TMI Blog2019 (9) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... Also, there is no Section/Chapter Note, specifying such processes amounting to manufacture under Chapter 15 of Central Excise Tariff Act, 1985. Merely because the product Bees wax is mentioned under Chapter Sub-Heading 1507, it cannot be considered that the processes carried out on the raw Bees Wax resulted into manufacture within the definition of Sec. 2(f) of CEA,1944. Thus, Bees Wax cleared by the Appellant cannot be said to be manufactured by subjecting the raw Bees waxinto the processes of melting, purifying, re-packing into bags of 25/50kgs. Also, the learned Commissioner, while examining the dutiability in relation to mineral waxes has held that the simple processes of re-melting and packing would not bring into existence a new product. Thus, a different yard stick cannot be applied to Bees wax. The impugned Order is modified to the extent of setting aside confirmation of duty, interest and penalty, directing confiscation imposition of personal penalty relating to processing of Bees Wax - appeal allowed in part. - Excise Appeal No.1326 of 2009, 1324 of 2009, 1325 of 2009 - A/86559-86561/2019 - Dated:- 6-9-2019 - HON BLE DR. D.M. MISRA, MEMBER (JUDICIAL) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trial fatty alcohol under the name Sizole and emulsifying wax and also petroleum jelly. In the order dt.31.10.2006, the Adjudicating Authority held that Sizolefalling under CSH No.1505.00 is chargeable to Nil rate of duty. This finding was reiterated in the impugned order. M/s Shell Corporation purchased duty paid micro-crystalline waxes (MC waxes), flack waxes and carnauba waxes falling under CSH 2712.20 in different packings which were subjected to the process of melting, drying and packed in standard weight of 25 kgs in corrugated boxes. These activities were held to be not amounting to manufacture in the Adjudication order dt.31.10.2006 and confirmed in the impugned order. The third unit M/s Bhakti Petro-chem is a trading firm and purchased these waxes from various Bees Keeper s societies and subjected the same to process of melting, water-washing, remelting, and acid washing, slabbing by drying in tray, and packing in standard weight of 25 kgs in corrugated boxes. By undertaking these processes, impure Bees waxes was purified and made final quality for efficient and better utilization. The aforesaid activity was held to be manufacture within the definition of Section 2(f) of C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounting to manufacture as no new product with different characteristic has emerged. It is also his contention that even if a product is specifically mentioned in the tariff entry, mere mention of the item in the schedule to Central Excise Tariff Act or even if process is indicated in tariff entry, the goods does not become excisable automatically unless it undergoes the process of manufacture as defined under section 2 (f) of CEA, 1944. In support of his argument, he has also referred to the judgment of Hon ble Supreme Court in the case of CCE Lucknow Vs M/s Wimco Ltd 2007 (217) ELT 3 (SC) and in the case of Shyam Oil Cake Ltd Vs Collector of C.E., Jaipur 2004 (174) ELT 145 (SC). 5. Further, he has submitted that if at all any duty liability on manufacture of these wax is confirmed, then the same should be on M/s Bhakti Petrochem, who has undertaken these processes and not M/s SLTPPL. Further, he has submitted that since the clearances of industrial fatty acids and industrial fatty alcohol under the brand name Sizole being held to be chargeable to Nil rate of duty, consequently, the value of clearances of such products manufactured by M/s SLTPPL has to be treate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 44; secondly, the classification and rate of duty as applicable to fatty acids. 11. In the de-novo proceeding, the learned Commissioner, pursuant to the said direction has concluded that various processes applied to Bees wax resulted into manufacture , whereas the processes applied to synthetic waxes do not amount to manufacture, accordingly not excisable. The Commissioner has also held that the good sizole, is nothing but an industrial fatty acid, classifiable under Chapter Heading No.1505 of Central Excise Tariff Act, 1985which attracts Nil rate of duty. Therefore, the short question involved for consideration in the present Appeal is whether the process employed to Bees waxes by the Appellant has resulted into manufacture and hence the resultant finished goods also Bees wax is liable to duty. 12. The learned Commissioner, held that the process of melting, water-washing and re-melting, acid washing, slabbing by drying in a tray and then packing in corrugated boxes of 25 kg, involves series of processes by which the wax is manufactured. He has observed that to make the wax commercially recognized as a new and distinct commodity, such processes wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... washers) to be not dutiable being not a manufactured product is perfectly valid and deserves to be affirmed. 14. We also do not find any Section/Chapter Note, specifying such processes amounting to manufacture under Chapter 15 of Central Excise Tariff Act, 1985.Merely because the product Bees wax is mentioned under Chapter Sub-Heading 1507, it cannot be considered that the processes carried out on the raw Bees Wax resulted into manufacture within the definition of Sec. 2(f) of CEA,1944 in view of the principle of law laid down by Hon ble Supreme Court in the case of Shyam Oil Cake Ltd s case. Their Lordships observed as: 23. It was submitted that the decision in Aman Marble Industries case is not laying down the correct law inasmuch as it has not taken note of the amended definition of the term manufacture in Section 2(f). It was submitted that for a process to amount to manufacture it need not be so mentioned only in the Section or Chapter Note and that it could also be so mentioned in the Tariff Item. It is true that the amended definition has not been taken note of. We are in agreement with the submission that under the amended definition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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