TMI Blog2017 (4) TMI 493X X X X Extracts X X X X X X X X Extracts X X X X ..... ess, would not amount to manufacture - demand set aside - appeal allowed - decided in favor of assessee. - E/1315/2008 - A/60547/2017-EX[DB] - Dated:- 16-3-2017 - Mr. Ashok Jindal, Member (Judicial) And Mr. Devender Singh, Member (Technical) Ms. Krati Somani, Advocate- for the appellant Shri. G.M. Sharma, AR- for the respondent ORDER Per Ashok Jindal The appellant is in appeal against the impugned order. 2. The facts of the case are that the appellant prepared branded Motor spirit and branded HSD in their depots by blending duty paid Motor spirit and duty paid HSD with Multifunctional additives (MFAs) (0.04% to 0.06%). The MFA blended MS and HSD of HPCL is sold under brand names MS Speed and Hi-Speed Diesel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heir Depots/Installations where a part of such MS/HSD is blended with MFAs and sold as branded MS/branded HSD under brandnames like Speed , Power , Turbojet etc. The branded MS/HSD are claimed by the Appellants to increase the engine efficiency by reducing the formation of carbon deposits and accordingly are sold at a premium. The point of dispute in this group of appeals is as to whether the process of blending ordinary MS/HSD with very small quantity of MFAs (0.04% to 0.06%), to make branded MS/HSD amounts to manufacture. After considering the rival contentions on this point, we, for the reasons given below, hold that this process does not amount to manufacture and hence would not attract any central excise duty. 4.1 The MS and H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loth Mills Ltd. reported in 1977 (1) E.L.T. J199 (S.C.) and Tega India Ltd. v. CCE reported in 2004 (164) E.L.T. 390 (S.C.) has held that manufacture implies a process, as a result of which a new product with distinctive name, character and usages emerges, that the word 'manufacture' implies change, but every change in raw material is not manufacture and that there must be such a transformation in the raw as a result of the processing that a new and different article with distinct name, characteristics and usages emerges. This criteria of manufacture is not satisfied in this case as, as mentioned above, the MS and the HSD after blending with MFA remain MS and HSD only and except for a brand name being added to their names, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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