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2005 (6) TMI 92 - CESTAT, BANGALOREClassification under CSH 2618.00 - demands - Process of manufacture - whether on carrying on the process of grinding, the Granulated Blast Furnace Slag (GBS) would bring into existence a new product viz. Ground Granulated Blast Furnace Slag (GGBS) - HELD THAT:- We find that the activity of mere grinding of GBS to bring into existence GGBS would not amount to a process of manufacture. There is no chemical change nor does it change the character of the slag. The slag remains slag and, therefore, the finding given by the Commissioner, without examining the ratio of 23 judgments cited by the assessee, is not justified and not correct in law. Mere physical change will not bring into existence a different commodity. The change should bring a change in the name and character and use of the commodity as held by the Apex Court in a large number of judgments. In the case of Iswar Grinding Mills v. CCE [1999 (8) TMI 387 - CEGAT, CALCUTTA] wherein crushing/powdering of tobacco leaves first manually and then with power aided crushing/grinding machine to form tobacco flakes/powder has been held to be not a process of manufacture. Likewise, the judgment of Alchemie Pvt. Ltd. v. CCE [1999 (8) TMI 380 - CEGAT, MUMBAI] wherein it has been held that Concentrate spent liquor/wash containing 4 to 6% caustic soda obtained by concentration of 16-18% after removing impurities has been held to be not a new product and the process has been held to be not a process of manufacture. In the present case, there is no change in the character nor in its use and hence the ratio of the judgments cited by the Sr. Counsel would apply to the facts of the case. The impugned order is not correct and legal and hence the same is set aside by allowing the appeal with consequential relief, if any.
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