9911796707
TMI Blog2000 (10) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.Briefly stated the facts of the case are as under :- 2.1The appellants are engaged in the manufacture of flexible packaging materials i.e. Wax Coated Wrappers in rolls/sheets. They were issued a show cause notice on 16-1-1990 by the Commissioner of Central Excise, Bolpur, alleging that during the course of manufacture of their final product, the appellants are also manufacturing waxy materials comprising essentially of Paraffin Wax and the same are classifiable under Heading 3404.00 as Prepared Wax, though used captively by the appellants in the manufacture of Wax Coated Wrappers. The said notice proposed to confirm the demand of duty of Rs. 42,64,069.00 as duty of excise leviable on the Prepared Wax allegedly manufactured by the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0°C temperature. After melting of paraffin wax which comprises about 80-90% of total input into the melting tank, certain quantity of poly and eva granules are poured into first tank when paraffin wax is already in molten state. Then more heat is provided to raise the temperature to about 150-170°C to absorb the poly and eva into the hotmelt mix. Proper mixing of the two is necessary to make the molten mix suitable for coating operation from the primary tank. The molten wax is strained through joint pipe and automatically transferred to the secondary tank at same temperature conditions (which is also known as lower tank). Such molten wax is then transmitted through pipelines to the coating tray/tub through which the paper passes and in this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... two elements are to be melted together for the purpose of coating on base paper through the single chilling drum." 4.It has been strongly contended before us that the appellants cannot be said to have manufactured any new marketable product in the name and style of Prepared Wax. Molten Wax is necessary required for the purpose of wax coating which is captively used in its entirety inasmuch as it is neither removed nor capable of being removed and there is no scope for marketing of the wax in the condition in which it arises in the intermediate stage of continuity on line manufacturing operation and consumed in that stage only. The onus to show the marketability of the product is upon the Revenue which has not been discharged by producing a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factory at a temperature of 150°C to 170°C and consumed in that condition itself, is capable of being marketed or not. The appellants have strongly relied upon the Tribunal's decision in the case of TISCO reported in 1995 (76) E.L.T. 602, wherein molten iron having temperature of 1300°C to 1400°C was held as not marketable and hence not dutiable, despite a specific entry of molten iron appearing in the erstwhile Central Excise Tariff. The appeal filed by the Revenue against the above decision of the Tribunal was dismissed by the Hon'ble Supreme Court, thus confirming the view taken by the Tribunal. Admittedly, hotmelt wax or molten wax arising in the appellants' factory at the intermediate stage of continuous manufacturing operation, emerge ..... X X X X Extracts X X X X X X X X Extracts X X X X
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