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2013 (1) TMI 122 - AT - Central ExciseAyurvedic soap manufactured under the brand name MEDIMIX - classifiable under sub-heading 3401.12 directing nil rate of duty or under sub-heading 3401.19 chargeable to duty on MRP basis - use of power for brining caustic soda lye to the storage tanks - Held that:- The case of the respondent is fully supported by Final Order passed in respect of another MEDIMIX soap manufacturing unit. In that case, the raw material supplier had contracted to supply the raw material at the storage tanks of the assessee and, as part of transportation of the material upto the tank, they took the aid of power. The Bench that such transportation of raw material could not be held to have been done in, or in relation, to the manufacture of soap taking support from Shalimar Paints Ltd. Vs. Commissioner 2001 (2000 (5) TMI 141 - CEGAT, KOLKATA). Their product cannot be classified under sub-heading 3401.19 by reason of the fact that power was used to bring one of the raw materials to the factory. Testing of raw materials and the final product - Held that:- The respondent is a Proprietary concern. No oral evidence of its proprietor was taken by the Department. In these circumstances, Ground which is to the effect that the assessee admitted that the quality control equipments and machinery were operated with the use of power has no substance. The appellant (revenue) has not been able to come anywhere near proving the use of power by the respondent in the manufacture of MEDIMIX soap during the material period. - That electrically operated equipments were used for testing raw materials and the final product is a far cry or a ipse dixit. - Decided in favor of assessee.
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