TMI Blog2011 (4) TMI 1130X X X X Extracts X X X X X X X X Extracts X X X X ..... ime, no merit in the Department’s appeals and the same are dismissed - E/748-749/2002 - A-118-119/KOL/2011 - Dated:- 20-4-2011 - S/Shri S.S. Kang, P.R. Chandrasekharan, JJ. REPRESENTED BY : Shri A.K. Sharma, JDR, for the Appellant. Shri Sanjoy Kaushal, Chief Financial Manager, for the Respondent. [Order per : P.R. Chandrasekharan, Member (T)]. Heard both sides. 2. There are two appeals. The issue for consideration in both is whether blending of imported superior kerosene oil with domestically produced kerosene oil so as to raise the smoke point to 18 mm would amount to manufacture or not and if so, whether cenvat credit would be admissible of the additional duty paid on imported superior kerosene oil used in such ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their contention. Since imported kerosene oil has been used as an input in the manufacture of kerosene, they are eligible for the cenvat credit of the additional customs duty paid in terms of the provisions of Cenvat Credit Rules. 5. The ld. Adjudicating authority, Commissioner of Central Excise, Patna considered the matter and dropped the demands raised against the respondent company towards irregular availment of cenvat credit. The Revenue is in appeal against the said order. 6. The decision of the Hon ble Apex Court relied upon by the Revenue in the case of Chowgule Co. Pvt. Ltd. (referred supra) deals with a sales tax case where it was held that blending of different qualities of ore, possessing different chemical and physical c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... processes which brings into existence a completed excisable product would amount to manufacture. In the case under consideration, it is not in dispute that the blending has been done so as to raise the smoke point to 18 mm so that the product can be marketed as kerosene. Though the activity may be a simple process, it brings into existence a new product known as kerosene and therefore, in our view the activity of blending imported kerosene oil with indigenous oil so as to make it a marketable product amounts to manufacture . There are a large number of judgments of the Hon ble Apex Court wherein it has been held that to determine whether an activity amounts to manufacture, it should be found out whether the activity brought into existence ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
