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2017 (11) TMI 1040 - AT - Central ExciseManufacture - food flavours - valuation - royalty - includibility - appellant was of the view that the food flavours were prepared by them by mixing different odoriferous substances purchased by them from different suppliers. They claimed that this process did not amount to manufacture - department is of the view that the amounts received by way of royalty by the appellant was required to be added to the consideration received for food flavours - Time limitation - Held that: - the issue before us is an intricate mixture of the question whether manufacture is involved in the preparation of food flavours by the appellant as well as valuation of the same for payment of excise duty. It goes without saying that if the process of making food flavours does not amount to manufacture then there is no question of payment of excise duty. In such a scenario, the dispute on valuation becomes irrelevant - the question of manufacture taken at the outset. Held that: - In the absence of detailed explanation of the processes involved, we are unable to entirely appreciate the same. Moreover, we find that the details were not considered by the adjudicating authority and in the absence of detailed discussions by the adjudicating authority on the processes involved, we are unable to take a firm view in the matter. In the absence of the details of the processes employed by the appellant on record, we are not in a position to give due consideration to all the factors and come to a judicious conclusion - we deem it necessary to remand the matter to the adjudicating authority to consider in detail the process of manufacture after ascertaining the same and decide the question whether it is a process of manufacture. In the event a view is taken that the processes amount to manufacture, the adjudicating authority will re-examine the issue of valuation of such food flavour for payment of duty. Appeal allowed by way of remand.
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