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TMI Blog2019 (4) TMI 1068X X X X Extracts X X X X X X X X Extracts X X X X ..... etable or nonsaleable. These activities cannot amount to manufacture. Appeal allowed - decided in favor of appellant. - Appeal No. Ex./297/2009-DB - ORDER NO. FO/A/75042/2019 - Dated:- 11-1-2019 - SHRI P. K. CHOUDHARY, JUDICIAL MEMBER AND SHRI BIJAY KUMAR, TECHNICAL MEMBER Ms. Padmabati Patil, Adv. for the Appellant (s) Shri A. Roy, Supdt. (AR) for the Revenue (s) ORDER Per Shri P. K. Choudhary : The present appeal is filed by appellant against. Order-in-Original No. 12/Commissioner/CE/Haldia/Adjn./2009 dt.26.02.2009. 2.1 The facts of the case in brief are that the appellants are engaged in the manufacture of soaps, detergents, scouring preparations, shampoos, toothpastes, creams, lotions and various ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th obsolete/damaged stocks so as to ensure that only quality products reach the consumers. Accordingly, the appellants procure damaged and date expired finished goods from the markets to that such damaged/expired stocks do not get sold in the market by way of sales returns. As per the appellant Company s standards, such goods are not saleable and cannot be sold to the consumers and have to be necessarily destroyed or frozen or dealt with appropriately. Such stocks at the depots are also collected at a single point at one of the depots. Such goods are then de-wrapped, mutilated, defaced or destroyed to render them non-marketable to consumers. Items, such as, soaps, detergents are un-wrapped. Bars and cakes are cut into pieces. The bulk is th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 76,74,115/-, the said Education Cess of ₹ 1,17,941/- and the said Secondary and Higher Education Cess amounting to ₹ 3,106/-, should not be demanded from and paid by them in terms of proviso to Section 11A (1) of the Central Excise Act, 1944 ; (iii) Interest at the appropriate rate on the said amounts of Central Excise duty and Education and Secondary and Higher Education Cesses should not be charged, demanded from and paid by them under Section 11AB of the said Act ; (iv) Penalty in terms of Section 11AC of the said Act, read with Rule 25 of the Central Excise Rules, 2002 for such non-payment of Central Excise duty, Education and Higher Education Cesses should not be imposed on, demanded from and paid by M/s Hindust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Central Excise Tariff Act, 1985, in a Unit container or labeling or re-labeling or containers including declaration or alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer, would amount to manufacture. It is strongly argued by the ld. Advocate that in the present case, already marketable or marketed soaps and detergent bars/cakes, detergent powder, shampoo, tooth paste, etc. in damaged condition, are collected and brought back to the godown and de-packed/de-wrapped or decanted and cut into pieces. It is her submission that in the activity undertaken, the product is not made marketable to the consumer but it is sold in bulk to various parties, who in tu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt bars/cakes, detergent powder, shampoo, tooth paste, etc. in damaged condition, are collected and brought back to the godown and de-packed/de-wrapped or decanted and cut into pieces. We also observed that the product is not made marketable to the consumer but it is sold in bulk to various parties, who in turn may make them marketable. The activity of packing or repacking or any other treatment must be for rendering the products marketable. On facts of the case as stated above and under the circumstances, we find that by resorting to such activities of de-packed/de-wrapped or decanted or cutting into pieces rendered the products as non-marketable or nonsaleable. These activities cannot amount to manufacture. We find that the issue is no mo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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