9911796707
TMI Blog1996 (4) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... disposed of by a common judgment. 3.Respondent No. 2 Central Board of Excise and Customs issued a circular, Annexure `D' to the petition, in exercise of the powers conferred under Section 37B of the Central Excises and Salt Act, 1944 (hereinafter referred to as the Act) for the purpose of ensuring uniformity in classification and practice of assessment of the said goods, the Board directed that the addition of chemicals and other ingredients like inert carriers or solvents and also surface active dispersing and stabilizing agents to pesticidal chemicals in highly concentrated form would amount to "manufacture" within the meaning of Section 2(f) of the Act since it results in the emergence of a new and distinct product having different pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts resulting in their dilution amount to manufacture or not came up before the Central Excise and Gold Appellate Tribunal (CEGAT), Special Bench `C', New Delhi and the Tribunal in its decision reported in 1993 (68) E.L.T. 848, considering similar case, held that the same does not amount to `manufacture'. In that case, the process carried out by the assessee mainly comprised of diluting concentrated basic pesticidal chemicals in question through addition of inert carriers/solvents and dispersing and stabilizing agents. It was contended that after such process, the products were marketed as MALATHION, DDT, ALDRIN and SOHNAGAR. It was contended that no duty was chargeable on the products since the basic chemicals used were duty paid and the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal over the decision rendered by the Tribunal. It was open for the department to move either the High Court or the Hon'ble Supreme Court to get the correctness decided, but having not done so, the effect must be given to the decision rendered by the Tribunal. Learned Advocates have placed reliance on the decision of the Apex Court in the cases reported in AIR 1961 SC 182 and AIR 1992 SC 711. 8.Section 37B of the Act reads as under :- "37-B. Instructions to Central Excise Officers. - The Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963 (54 of 1963) may, if it considers it necessary or expedient so to do for the purpose of uniformity in the classification of excisable goods or with respect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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