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2013 (9) TMI 420 - HC - Central ExciseStay - Activity Manufacture OR Not – Goods Marketable OR Not - processing of waste oil - process of dehydration, distillation, clay polishing and filtration etc. By means of the aforesaid processing, impurities etc. are being removed from the used/burnt oil. The oil so obtained from such waste/used oil is being packed and sold as base oil, lubricating oil and transformer oil etc. to the consumers - Revenue was of the view that the processing of oil amounts to manufacture in view of Note 4 of Chapter 27 - the process undertaken by the Company, in respect of the waste oil, is adoption of a treatment to render the product marketable to the consumers and hence amount to manufacture by virtue of Section 2(f)(ii) of the Act. Held that:- Note 4 of Chapter 27 provides that in relation to the lubricating oils and lubricating preparation of heading 2710, the adoption of any other treatment to render the product marketable to the consumer amounts to manufacture. The Tribunal, having regard to the entire facts and circumstances, has directed the Company to deposit only 50% of the duty and waived the pre requisite requirement of deposit of the balance amount of the duty, interest and the penalty Waiver of Pre deposit - The appellants were not able to make out a strong, prima facie case, which may warrant to allow complete waiver of the pre requisite requirement of deposit of the duty - We are further of the view that, having regard to the entire facts and circumstances, the order of the Tribunal directing to deposit 50% of the duty demanded and allowing the waiver of the balance amount of duty, interest and the penalty as also the waiver of the deposit of entire amount of penalty, the Director of the Company was wholly justified and does not suffer from any error and does not require any interference.
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