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TMI Blog2020 (1) TMI 420X X X X Extracts X X X X X X X X Extracts X X X X ..... ould be completely ignored and no reference can be drawn from such circular. Since the draft circular was not issued the circular No. 83/83/94-CX dated 13.12.1994 was continued and effective. Therefore, the finding of the Learned Adjudicating Authority based on the draft circular is not sustainable - In this situation we are of the view that the entire matter needs to be given a relook by considering the various alternative submission made by the appellant. Appeal allowed by way of remand. - Excise Appeal No. 286 of 2011 - A/12246/2019 - Dated:- 28-11-2019 - HON'BLE MEMBER (JUDICIAL), MR. RAMESH NAIR AND HON'BLE MEMBER (TECHNICAL), MR. RAJU Shri Vipin Kumar Jain, Shri A. Sheeraji, Ms. Dimple Gohil, Advo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he effective circular was Circular No. 83/83/94-CX dated 31.12.1994, which clarified that addition of Methanol or Ethanol to Motor Spirit, does not amount to manufacture. It was directed in the said circular that the pending cases of the issue of mixing of duty paid Ethanol to the extent of 3% with 97% with paid Duty motor spirit to be decided in the light of the opinion of the Chief chemist, CRCL, New Delhi. He further submits that Excise Duty is payable on the value of goods at the time of clearance. Accordingly, duty would have been payable on the value of EBMS, which was cleared from the appellants factory. The appellant have admittedly paid the duty on Motor Spirit and Ethanol. Therefore, by virtue of Notifications No.6/2002-CE dated 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther submits that merely because an exemption Notification existed for EBMS cannot by itself mean that process of blending of Ethanol with Motor spirit tantamounts to manufacture. It is settled law that mere mention of product in the tariff or in an exemption will not sufficient to hold that it is the result of process of manufacture. He placed reliance on the judgment in the case of UOI v/s Ahmedabad Electricity 2003 (158) ELT 3 (SC), New Shorrock Mills v/s. C.C.E. 2005 (190) ELT 35. 4. The question whether a process amount to manufacture or not has to be decided by applying the tests laid down by the Hon ble Supreme Court in the case of JG Glass Industries 1998 (97) ELT 5 (SC). Therefore, blending of Motor Spirit with Ethan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the Draft circular F. No.83/04/2007-CX which intended to withdraw the Circular No.83/83/94-CX dated 13.12.1994 which circular was heavily relied upon by the appellant. In this regard we are of the view that the draft circular which was never issued as a circular should be completely ignored and no reference can be drawn from such circular. Since the draft circular was not issued the circular No. 83/83/94-CX dated 13.12.1994 was continued and effective. Therefore, the finding of the Learned Adjudicating Authority based on the draft circular is not sustainable. In this situation we are of the view that the entire matter needs to be given a relook by considering the various alternative submission made by the appellant. 8. Ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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