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2019 (5) TMI 935 - AT - Central ExciseProcess amounting to manufacture or not - diluting of raw material namely, “STYROFAN D 623” and “APCOTEX TSN 100” with water and then packing the resultant material in different packages - manufacture of ‘Sika Latex’ and ‘Sika Latex Power’ or not - scope of ‘manufacture’ as defined under Section 2(f) of Central Excise Act, 1944 - HELD THAT:- The appellant could able to demonstrate that characteristics and chemical composition of the raw material namely, “STYROFAN D 623 AP” and “APCOTEX TSN 100” continued to remain same even after addition of water to the said raw materials as it has not lost its original character, chemical composition, use etc. after application of the process of dilution with water. Besides, by addition of the water to the said raw materials, there could be some change in the quality and the efficiency in use of the product but that cannot be the sole criteria for considering dilution as a process of ‘manufacture’. Reliance placed in the case of Servo Med Industries Vs. Commissioner of Central Excise [ 2015 (5) TMI 292 - SUPREME COURT ] where it was held that The syringe and needle retains its essential character as such even after sterilization and no manufacture taking place. Thus, it can safely be inferred that the process of dilution of the raw materials “STYROFAN D 623 AP” and “APCOTEX TSN 100” cannot be called as a process of manufacture. Consequently, the product Sika Latex and Sika Latex Power also not chargeable to excise duty. Appeal allowed - decided in favor of appellant.
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