TMI Blog2006 (1) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... Vipul A. Shah and K.V. Sahasrabudhe, Consultants, for the Appellant. Shri Manoj Krishna, SDR, for the Respondent. [Order per : Jyoti Balasundaram, Vice-President]. The applications for waiver of pre-deposit of duty of Rs. 1,04,73,056/- (Rupees one crore four lakhs seventy-three thousand fifty-six only) and penalty of equal amount arise out of the order of the Commissioner of Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he supplier under Heading 3204.29 of CETA, and mixing powder into paste, their activity would not amount to manufacture in the light of the Note 6 of Chapter 32 and in the light of the Tribunal s order in the case of CCE, Mumbai-II v. Indian Dyes Chemicals [2005 (188) E.L.T. 529 (Tri.-Mumbai)] and judgment of the Bombay High Court in the case of Phoenix Mills Ltd. [2004 (168) E.L.T. 310 (Bom.)]. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to what amount to manufacture. By applying this legal fiction we find that even diluting of a unformulated dye will amount to manufacture if this diluting is done for making it ready for use. We also observe that decreasing of colour powder also amounts to manufacture in view of this legal fiction created by Chapter Note 6 of Chapter 32. We also observed that sometimes two or more dyes are mixed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. We have carefully considered the rival submissions, we find that the applicants contention that they were purchasing standardized/formulated powder from their supplier M/s. Indokem for conversion into paste form standardized/formulated is prima facie tenable. Further, in separate proceedings for the subsequent period when the same applicants had purchased powder from M/s. Indokem, for conve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... standardized and prepared dyes by simple mixing with other material shall not amount to manufacture. We therefore hold that in the light of the Board circular read with the judgments relied upon by the applicants, prima facie case for waiver has been made out. Accordingly, we waive the pre-deposit of the duty and penalties and stay recovery thereof pending these appeals. (Operative part pronoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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