TMI Blog2004 (5) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... l manufacturing operation could be conducted. The trials were completed using the 32 MTs of imported HDPE in the bagging plant and extruder section of the plant. (b) The officers on 2-8-1992 on a revisit, earlier having taken cognisance on 1-8-92 of the above-said trial activity detained the following goods : (i) Various grades/qualities of HDPE in 436 bags (approx. 6540 kgs) in mixed condition filled with HDPE granules, chips, flaks, and fines etc. (ii) Relene HDPE granules of a produce of Reliance (Reliance Petrochemicals Ltd., Hazira) packed in standard pack of 25 kgs. (iii) HDPE granules/chips mixed not sorted in 500 kgs bag in loose condition. (iv) HDPE waste in lump form in irregular shape. Out o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rted HDPE granules. (f) Once the imported granules are not an input, they are not "raw material" and manipulation thereof resulting in bagged HDPE, subsequent stages emergence from the trial, in flaks, granules, lump form cannot be considered, as to be covered by the concept of, manufacture following the Supreme Court's decision in the case of Union of India v. Ahmedabad Electricity Co. Ltd., 2003 (158) E.L.T. 3 (S.C.) Para 23 which reads as follows : "23 In the case in hand also coal which leads to production of cinder is not sued as a raw material for the end-product. It is being used for ancillary purpose that is a fuel. Therefore, irrespective of the fact whether any manufacture is involved in the production of cinder it should be h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacture under the Central Excise Act, 1944 would be applicable have to be satisfied, even in cases where the activity is attracted into the ambit of manufacture "by chapter notes in the Schedule to Central Excise Tariff Act, 1985 [see C.C. Excise, Patna v. Tata Iron Steel Co. Ltd., 2004 (165) E.L.T. 386 (S.C.)]. (h) In the present case, the goods in the changed primary forms are admittedly mixed condition and the marketability thereof is not established. They are not the consequence of 'a deliberate skilful manipulation of the inputs or the raw materials' [see Modi Rubber Ltd., 1987 (29) E.L.T. 502]. Ld. DR relied by Supreme Court's decision in Ahmedabad Electric Co. Ltd. The converted form are neither marketable nor sale-ability t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case [1988 (34) E.L.T. 30 (Bom.)] the fact was of a non-duty paid removal is exigible goods read with the non accountal (see Para 4 of Kirloskar Brothers' case) and not a case, as in this case, of a simplicitor non-accountal. The Andhra Pradesh High Court in the case of Southern Steels, 1979 (4) E.L.T. J402 have held that there was no warrant for rendering the goods to confiscation for the mere fact of non-accountal in production records viz. RG 1 when no preparation for illegal removal was not existing. In the present case not only there is no preparation of illegal removal but the goods are admittedly not even sorted out into granule/flaks/powder etc the alleged individual converted forms. Quantity being in 500 kgs, jumbo bags, normally u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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