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TMI Blog2005 (4) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... t the elaborate reasoning of the Commissioner (Appeals). When subjecting raw material to process of manufacture, it is not necessary that there should be a sort of transmutation. Definitely the 'supari powder' will have the characteristics of 'betel-nut'. We cannot say that there is no manufacture for the reason that the 'betel-nut' remains as 'betel-nut'. We cannot disregard Note 4 of Chapter 21. Moreover a plethora of case laws relied on by the learned Advocate appearing for the Revenue are entirely in Revenue's favour. The Tribunal in the case of National Starch Products (P) Ltd.[ 1996 (6) TMI 135 - CEGAT, NEW DELHI] held that conversion of tamarind seed into tamarind seed powder is a process of manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of the various inputs. However, they filed revised classification declaration under Rule 173B of the erstwhile Central Excise Rules, 1944 with effect from 17-7-1997 claiming the classification of the products under Chapter Sub-heading 0801.00 of the Central Excise Tariff. They contended that the crushing of betel-nuts into smaller pieces by machines and passing them through different sizes of sieves to obtain goods of different sizes/grades and sweetening the cut pieces does not amount to manufacture. Mere crushing of betel-nut into small pieces does not bring into existence a different commodity with distinct character and use. But the Adjudicating authority did not accept the contention of the Respondents. He confirmed the origin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ahalli, learned Advocate appeared for the Revenue, appellant in this case, and Shri M. Chandrasekharan, Sr. Advocate Shri V. J. Sankaram, Advocate appeared for the respondents. 4. The learned Advocate for the Revenue urged the following points :- (1) The learned Advocate drew our attention to Chapter Note 4 of Chapter 21 which reads as under - 4. In this Chapter Betel-nut powder known as supari means any preparation containing betel-nuts but not containing any one or more of the following ingredients, namely lime, katha (catechu) and tobacco, whether or not containing any other ingredients, such as cardamom, copra and menthol. The above note was introduced in the year 1995 Budget. It was urged that the very mention of the product in the Cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0) E.L.T. 179 (S.C.) (v) Sree Baidyanath Ayurved Bhavan Ltd. - 1996 (83) E.L.T. 492 (S.C.) (vi) Sree Ramakrishna Soapnut Works - 2004 (167) E.L.T. A175 (S.C.) (vii) Sree Ramakrishna Soapnut Works - 2004 (164) E.L.T. 238 (Kar.) (viii) Karnataka Soapnut Powder Mfrs. Association - 1999 (111) E.L.T. 27 (Kar); 2000 (118) E.L.T. A156 (S.C.) (ix) Kothari Chemicals - 1996 (86) E.L.T. 209 (All.) (x) S.N.Sunderson (Minerals) Ltd. - 1995 (75) E.L.T. 273 (M.P.) (xi) SKB Dry Fruits Marketing Co. Pvt. Ltd. - 2003 (151) E.L.T. 424 (Tri.-Del.) (xii) Jalani Enterprises - 2001 (132) E.L.T. 422 (Tri. - Del.) (xiii) Eagles Chicory (Firm) - 2000 (126) E.L.T. 908 (Tri.) (xiv) National Starch Products (P) Ltd. - 1996 (86) E.L.T. 665 (Tri.) (xv) Luchhman Dass Beha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t powder/betel-nut pieces/supari was not such a transformation to term it manufacture, in view of the characteristics of the raw material remaining the same, even after such processing. Though the goods may find a mention in the tariff, in order to be subjected to levy of excise duty, the goods should have resulted from manufacture as was held by the Apex Court in the cases cited supra. It was categorically held by the Constitution Bench of the Honourable Apex Court in the case of Union of India Anr. v. Delhi Cloth General Mills Co. Ltd., 1977 (1) E.L.T. (J199) (S.C.) = AIR 1963 SC 791 and reiterated in the case of Moti Laminates Pvt. Ltd. (supra) that the Tariff Schedule by placing the goods in specific and general category does not alter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el-nut is different from the supari powder. We cannot disregard Note 4 of Chapter 21. Moreover a plethora of case laws relied on by the learned Advocate appearing for the Revenue are entirely in Revenue's favour. The Tribunal in the case of National Starch Products (P) Ltd [1996 (86) E.L.T. 665 (Tri.)] held that conversion of tamarind seed into tamarind seed powder is a process of manufacture. The Tribunal in the case of Eagles Chicory (Firm) [2000 (126) E.L.T. 908 (Tri.)] has held that the process of roasting and grinding to convert chicory roots into chicory powder amounts to manufacture. The Tribunal in the case of SKB Dry Fruits Marketing Co. Pvt. Ltd. [2003 (151) E.L.T. 424 (Tri.-Del.)] has held that roasting, salting/spicing under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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