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2008 (9) TMI 386 - HC - Central ExciseWhether dilution of Alletherin to 3.6% by weight concentration (w/w) from 90% concentration/purity by adding deodorized K-oil as inert carrier/solvent, perfume as masking agent DHT (Dibutyl Hydroxy Tulune) as stabilizing agent amounts to manufacture? Held that:- Mere processing of the goods is not manufacture and to fall within the definition of manufacture a new substance should be formed. In the present case no new substance is formed and only a diluted form of original substance is packaged under a different brand name. Alletherin in its concentrated form is an insecticide and the final product manufactured by the respondent is a diluted form of insecticide which will only kill small insects like mosquitoes. There is no new substance which is created. The petitioner if it wanted to include dilution of insecticide within the meaning of manufacture could have made specific provision in this regard in section itself or in the chapter notes of the Schedule to Central Excise Tariff Act, 1985. In the absence of any such notes the mere process of diluting the alletherin by adding non-reactant substance cannot amount to manufacture. All that is being done is that the potency of the insecticide is being reduced. This cannot be termed to be manufacture. Question referred is answered against the petitioner
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