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2018 (8) TMI 237 - AT - Central ExciseManufacture - Regeneration of platinum catalyst from spent platinum catalyst - Process of making colloidal platinum catalyst from pure platinum - processes amounting to manufacture - manufacturer - extended period of limitation - penalty u/r 209A of the Central Excise Rules, 1944. Whether in the facts and circumstances of the case excisable goods viz. colloidal platinum catalyst from platinum and also regenerated platinum catalyst from spent platinum catalyst amounts to manufacture? - Held that:- The process involves only conversion of spent platinum catalyst into regenerated/activated platinum catalyst. As a catalyst, by its very nature, does not participate in the chemical reaction but only facilitates the same, the spent platinum catalyst will still remain what it was before being used as a catalyst, namely, a platinum catalyst. By implication, regeneration of spent platinum catalyst into reactivated platinum catalyst will not bring about a new product in existence with a different name, character or use - the process of conversion of spent platinum catalyst into regenerated platinum catalyst cannot be considered as a process resulting in emergence of a new product having a different name, character or use - demand set aside. Conversion of pure platinum to colloidal platinum catalyst - Held that:- The appellants have converted metallic platinum into colloidal platinum for which there is a separate entry in Chapter Heading 28.4300 as “colloidal precious metals” of the Central Excise Tariff Act. It is but obvious that the metallic platinum by itself cannot be used for the purpose, as desired by MDPL, for which obviously only colloidal platinum will do the job as the catalyst of choice. The name, character and use of the raw material (metallic platinum) thus, changes by its emergence into colloidal platinum. In the event, the process is definitely one amounting to manufacture for the purpose of Section 2(f) of the Act - process amounts to manufacture - demand upheld. Whether M/s. MDPL, in whose premises the colloidal platinum catalyst and regenerated platinum catalyst are alleged to be manufactured are liable for any penalty under Rule 209A of the Central Excise Rules, 1944 - Held that:- Penalties imposed on CIL and MDPL are set aside since the disputes revolve around interpretations on whether the processes concerned amount to manufacturing or otherwise. Appeal allowed in part.
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