9911796707
TMI Blog2005 (10) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by M/s. Motul Mafatlal Lubricants Limited (Motul) on payment appropriate customs duty and additional duties of customs, in bulk for repacking the same into various sizes on job work basis. While packing, the appellant is blending the said imported oils with a colouring material. The main question in the present appeal as to whether said activity of blending the lubricating oil with colouring material amounts to manufacture in terms of Section 2(f) of Central Excise Act, 1944. 2. Commissioner in his impugned order has held that as per definition of 'manufacture' given in Section 2(f) of the Act, the manufacture includes any process incidental or ancillary to the completion of manufactured products. In the present case, the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation resulting in emergence of a new product having distinct name, character and use. Prior to addition of dye in the product, the same was known as lubricating preparations in the market and trade. The addition of dye has resulted neither in any physical change nor in chemical change nor in any change in the nature of the product, nor a change in its ultimate use. As such, the activity of blending cannot be equated with manufacture so as to charge duty on the resultant product for the second time. He clarifies that such addition of red and green dye in the oil is only to differentiate between 2T and 4T lubricating oils. In support of the above submissions, reliance has been placed upon various decisions of the Tribunal as well as High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a particular colour is added. 5. We find that the Hon'ble Gujarat High Court in the case of Swastic Products v. Superintendent of C.Ex.- 1980 (6) E.L.T. 164 has held that colouring of paper does not amount to manufacture inasmuch as paper is already manufactured and the process of colouring cannot be said to be incidental or ancillary to the manufacture of paper. Simiarly, the Hon'ble Bombay High Court in the case of Garware Plastics Polyesters Ltd. v. UOI - 1991 (52) E.L.T. 506 (Bom.) has held that process of lacquering/metallising of polyester film does not result in emergence of a new, distinct, commercial commodity having different identity or name. The only difference which results from the process of metallising/lacquering is a c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of C.C.E., Bombay v. Popular Cotton Covering Works - 1994 (73) E.L.T. 264 (S.C.) the Supreme Court held that coating and covering of bare electric wire with paper, cotton or fibre yarn glass yarn does not amount to manufacture. 7. The list of case law on the point is endless. The ratio as repeatedly laid down by the Supreme Court as also in the precedence decision of the Tribunal is that the process undertaken must result in some new identifiable product than the product with which the process was started with. As we have already noted that lubricating oil remains lubricating oil even after adding colour, we are of the view that the activity undertaken by the appellant does not amount to manufacture. 8. Having held so, we take note of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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