9911796707
TMI Blog2004 (6) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... een examined by the Tribunal in case of Lakme Lever Ltd. v. CC, Mumbai [ 2000 (10) TMI 96 - CEGAT, MUMBAI] wherein it was held that if the product were already marketable then any amount of treatment to enhance its marketability would not amount to manufacture within the meaning of this note. We find that Board in its Circular No. 236/70/96-CX., dated 1-8-96 had clarified that dissolving ammonia into water does not amount to manufacture. We also find that by dissolving ammonia into water its marketability is not enhanced since this liquid ammonia is obtained from duty paid un-hydrous ammonia. Therefore, there is no further duty liability which arises on this liquid ammonia. Therefore, we do not find any merit in the appeal of revenue. We fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entral excise duty. The decision of Commissioner (Appeals) that activity of transferring of ammonia gas from bulk containers into smaller container will not amount to manufacturing process and no duty liability can be imposed on the appellants is not relevant to the present case. Therefore, the order of the Commissioner (Appeals) may be set aside. 3. On behalf of the respondents M/s Mysore Ammonia (P) Ltd., Shri G. Shivadas learned advocate pleaded that the respondents are bringing duty paid ammonia in bulk tankers at a very low temperature which is about -32 Centigrade and Ammonia is in the form of liquid at this temperature. During the course of transfer of this un-hydrous ammonia to cylinders certain quantity of ammonia in the form of va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfers upon a product the attributes of marketability which did it not possess earlier. We must note here the significance of the word 'consumer' in the note. Thus the product must be referred to must be rendered marketable to the consumer. Although this word is not defined it evidently refers to one who purchase the product for consumption by him, as distinct from a purchaser who trades in it. Therefore for any treatment to fall within the scope of the note to the chapter it must be one that confers upon product a quality as a result of which the product, which was otherwise not marketable is now rendered marketable. If the product were already marketable any amount of treatment to enhance its marketability would not amount to manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... marketable then any amount of treatment to enhance its marketability would not amount to manufacture within the meaning of this note. We find that Board in its Circular No. 236/70/96-CX., dated 1-8-96 had clarified that dissolving ammonia into water does not amount to manufacture. We also find that by dissolving ammonia into water its marketability is not enhanced since this liquid ammonia is obtained from duty paid un-hydrous ammonia. Therefore, there is no further duty liability which arises on this liquid ammonia. Therefore, we do not find any merit in the appeal of revenue. We find that the Commissioner (Appeals) has already given a very detailed order on the activity of transferring un-hydrous ammonia from tanker to cylinders not treat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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