TMI Blog2012 (5) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent. [Order per : Justice R.M.S. Khandeparkar, President (Oral)]. Heard JCDR for the appellant and Shri Mukesh, Representative for the respondent. 2. This appeal arises from the order dated 17-8-2004 passed by the Commissioner, Rohtak. By the impugned order, the Commissioner dropped the proceedings which were sought to be initiated against the respondents by issuance of show cause notice dated 16-7-1998. 3. The respondents had received back certain products manufactured by them on being rejected, for further processing. The department sought to initiate the proceedings to demand the duty on clearance of re-processed goods by taking resort to chapter note 11 of chapter 29. The said action was sought to be contested by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt to manufacture and therefore the provisions of Rule 173H would apply. Besides, reference has also been made to Circular No. 2/87, dated 7-1-87 which was issued by the Board in relation to the availability of benefit under Rule 173H in such cases. Reliance has also been placed in the decision of the Tribunal in the matter of Ranbaxy Laboratories Ltd. v. CCE, Chandigarh reported in 2003 (160) E.L.T. 899. 5. Undoubtedly the Tribunal in Nestle India Limited case has elaborately analysed chapter note 11 of chapter 29 while considering the issue as to whether the activity undertaken by the assessee therein amounted to manufacture within the meaning of term manufacture as defined in Section 2(f) of Central Excise Act, 1944 read with the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tories Ltd. reported in 2010 (255) E.L.T. 351 while dealing with the issue as to whether processes of re-labelling, repacking, re-blending, along with other physical processes like milling, blending, shifting, washing etc. and chemical processes like solvent treatment undertaken by the assessee in their factory amounts to manufacture as per Chapter Note 11 of Chapter 29 in relation to the goods which were received back as rejected, held as under - A perusal of the aforementioned facts clearly shows that the respondent had sold the bulk drugs to their buyers after paying the requisite duty. However, as the goods were received back as rejected , therefore, the same were reprocessed and again sold. It is a settled principle under the law t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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