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TMI Blog2017 (1) TMI 541X X X X Extracts X X X X X X X X Extracts X X X X ..... dealers from the depot. It was found that they were carrying out the processes of tinting at their depot to obtain the required shade of the paint. The process involved opening the containers wherein the base paint was received from the factory and immersing the tinter in the container in the required quantities to obtain desired shade of the paint . The container was then closed and computer generated sticker affixed on the container. The departmental authorities took the view that process of tinting amounts to process of manufacture and hence excise duty was liable to be paid after the process of tinting. Show cause notice was issued on 27.12.2007 raising the demand of central excise duty for the period 1.6.04 to 30.9.07. No tinting proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the goods specified in the Third Schedule, involves packing ore repacking of such goods in a unit container or labeling or re-labeling of containers including the declaration or alternation of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer. and the word manufacture shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable goods, but also any person who engages in their production or manufacturer on his own account. The lower authorities have taken the view that process of tinting amounts to manufacture in the light of the amended provision of Section 2(f) as above. It has been held t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty would always be there to consider the product as manufacture, however, in the definition of Section 2(f), any treatment given to the goods with the intention to make the product further marketable to the consumer also amounts to manufacture . It is fairly obvious that the ultimate consumer of the paints shall be interested in purchase of paints of the required shade and not base paint. Consequently, the process of tinting resulting in the paint of the required shade is definitely covered within the amended definition of manufacture given in Section 2(f). Consequently, the orders passed by the authorities below holding the process as amounting to manufacture cannot be faulted with and is required to be upheld. The observation of the Hon b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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