Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (8) TMI 297 - CESTAT NEW DELHI

2015 (8) TMI 297 - CESTAT NEW DELHI - 2015 (325) E.L.T. 613 (Tri. - Del.) - Classification of goods - Manufacturing activity or not - Classification of Hajmola, Imli - Classification under Chapter 20 or Chapter 13 - Held that:- Process undertaken to produce tamarind concentrate/paste does not produce any chemical change and the product at the starting point and at the end of the remains the same, but for formation of pulp and removal of added water/moisture. Hence, we find that in the production .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ce by the Revenue which resulted in confirmation of demands for the later periods. - there is no justification for the change in the Departments view and hold that there is no process amounting to manufacture in this case.

Classification of Tamarind Paste/Concentrate - Held that:- It is clear from the flow chart explaining the processed undertaken by M/s Dabur there is no extraction of any material and certainly not from any vegetable source. The raw tamarind purchased is washed and b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y as waste resulting in usable product in the form of pulp. The process thus is more of pulp preparation rather than extraction. These aspects have been examined in detail in the Commissioner (Appeals) order dated 08/05/2006. Here again the change in the view of Revenue for the later period to classify the product as vegetable extract under Heading 1302 is not explained with the reason. With the same set of facts the earlier view of classification was changed - Classification headings and the re .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

: Shri M.S. Negi, Authorized Representative (DR) For the Respondent : Shri B.L. Narasimhan, Advocate ORDER Per. B. Ravichandran :- There are 7 appeals taken up together as the issue involved is same in all. Two appeals (E/2670 of 2006 and E/2671 of 2006) were filed by the Revenue and the remaining 5 appeals were filed by the party. The facts of the case in brief are that M/s Dabur India Limited are manufacturers of various Ayurvedic Medicaments and food preparations. They also produce and clear .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e learned Commissioner (Appeals) vide his order dated 08/5/2006 covering the period 16/12/99 to 30/09/2004 set aside the original order and allow the parties appeal. The Revenue is before us aggrieved by this order of Commissioner (Appeals). 2. For the demands covering the period 01/10/2004 to 31/12/2010 the confirmation of demands and penalties imposed were upheld by the learned Commissioner (Appeals) in his various appeal orders. M/s Dabur India Limited are in appeal before us in respect of th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rind Paste is as below :- Boiling of Raw Tamarind/Imli in Tilting Pan Washing & Filtration of Material Squeezing of material Filtration of material Concentration in FFE/Vacuum after Settling Cooling & Packing in HDPE Drum with polylining 4. The Revenues contention is that the process which converts raw Tamarind to the Tamarind Concentrate or Paste will amount to manufacture. In the order dated 02/11/2007, the learned Commissioner (Appeals) concludes that from the process it is very clear .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

This conclusion of the learned Commissioner (Appeals) is erroneous. The Tribunal only held that there was no speaking order by the Department and hence directed the Competent Authority to decide the representation made by the party hence the learned Commissioner (Appeals) observation giving an impression that the Tribunal has set aside the order of earlier Commissioner (Appeals) on merit is not factually correct. The Commissioner (Appeals) did not give detailed finding regarding the satisfaction .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Central Excise duty it is necessary that a new product should come into existence as a result of a manufacturing activity. The definition under Section 2 (f) of the Central Excise Act, 1944 gives a wider content to the term manufacture as several processes which are normally not considered or understood as amounted to manufacture are specifically included therein. The common principle used for ascertaining whether a process amounting to manufacture in respect of any goods is laid down by the Ho .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

carbon. According to the learned Counsel manufacture is complete as soon as by the application of one or more processes, the raw material undergoes some change. To say this is to equate processing to manufacture and for this we can find no warrant in law. The word manufacture used as a verb is generally understood to mean as bringing into existence a new substance and does not mean merely to produce some change in a substance, however minor in consequence the change may be. This distinction is .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e of Union Of India vs. J.G. Glass Industries Ltd. reported in 1998 (97) E.L.T. 5 (S.C.) laid down two fold test for deciding whether the process is that of manufacture (or not). 16. First, whether by the said process a different commercial commodity comes into existence or whether the identity of the original commodity ceases to exist; secondly, whether the commodity which was already in existence will serve no purpose but for the said process. In other words, whether the commodity already in e .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rind can very well be put into the same use as of tamarind paste/ concentrate except that the latter is more refined for uniform better usability. 7. The learned Counsel for M/s Dabur also relied on the Hon ble Supreme Courts order in the case of CCE, Mumbai vs. Laljee Godhoo & Co. reported in 2007 (216) E.L.T. 514 (S.C.). In that case the Hon ble Supreme Court examined the processes undertaken to convert raw hing to make compounded asafoetida. The Hon ble Apex court held that there is no ch .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e, we find that in the production of tamarind paste/concentrate no process amounting to manufacture is involved. It is pertinent to note that the Department also held the same view in the earlier proceedings as confirmed by the learned Commissioner (Appeals) against which the Revenue is in appeal in two cases. The reason for change in the stand by the Revenue in the subsequent proceedings has not been brought out clearly. There is no change in the process and it is only the change of interpretat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

egetable extracts as it is nothing, but a simple extract made out of single herbal, namely, raw Tamarind. M/s Dabur contention is that the product is all along classified under Chapter 20 and there is no justification to call the same as vegetable extract. Further, no justification has been given by the Department for sudden change in the classification from Chapter 20 to Chapter 13. During the course of argument, the learned Counsel for M/s Dabur pleaded at length regarding the scope of Chapter .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version