TMI Blog1999 (3) TMI 299X X X X Extracts X X X X X X X X Extracts X X X X ..... of by one common order. 2. Briefly stated the facts are that the Appellant Company manufactured Boroquein Antiseptic Cream. They were purchasing Petroleum Jelly from the Market and using the same in the manufacture of their final product up to 9-10-1986. Thereafter they started using Micro Wax, Paraffin Wax and liquid paraffin oil in place of Petroleum Jelly. The Chemical test of the final product revealed that the cream contained Tankan Amla, Jasat Bhasma, Lanolin and soft Paraffin base; that soft paraffin is synoymus to Petroleum Jelly. The Collector, Central Excise, therefore held in the impugned order that the Appellant Company had manufactured Petroleum Jelly which was an excisable goods and chargeable to duty for the period from 1- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as goods. In support of his contention he relied upon the following decisions : (i) Bhore Industrties v. C.C.E., 1989 (40) E.L.T. 280 (S.C.). (ii) C.C.E. v. Ambalal Sarabhai, 1989 (43) E.L.T. 214 (S.C.). (iii) Union Carbide India Ltd. v. U.O.I. Others, 1986 (24) E.L.T. l69 (S.C.). (iv) Dharangadhara Chemicals Works Ltd. v. U.O.I., 1997 (91) E.L.T. 253 (S.C.). 4. The ld. Counsel also relied upon the decision in Indian Hydraulic Industries Ltd. v. C.C.E., 1988 (37) 213 (T) in which it was held that if specialised material handling equipment is not assembled prior to manufacturing on chasis and the parts are mounted on the vehicle part by part and it is only when the mounting of all the parts is complete that the specialised eq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disputed by the Appellants that they were initially using Petroleum Jelly in the manufacture of antispetic cream and the three products subsequently used by them were ingredients of Petroleum Jelly; that the test report had confirmed that the final product contained soft paraffin base which was synonymous to Petroleum Jelly; that the Petroleum Jelly is marketable in a semi solid form and as they were using the Petroleum Jelly in continuous production, they did not solidify it partially. He further submitted that no product can form part of any final product unless it come into existence during the process of manufacture. He mentioned that the fact of manufacture of Petroleum Jelly was never disclosed to the Department and showing of three ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as such, comes into existence attracting levy of duty of excise. No evidence has also been adduced by the Department that the liquid so obtained by heating paraffin oil, micro wax and paraffin wax is the goods which can be brought and sold in the market. The findings of the Collector that Petroleum jelly was purchased by them in barrels and goods in liquid/semi-liquid form are sold in barrel do not go to show that the liquid obtained by the Appellants at an intermediary stage in the manufacture of their final product is a goods which is marketable or is known as Petroleum Jelly in commercial parlance. The test report also does not certify that Petroleum Jelly comes into existence at an intermediary stage as it merely says that the simple ..... X X X X Extracts X X X X X X X X Extracts X X X X
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