TMI Blog2015 (10) TMI 2398X X X X Extracts X X X X X X X X Extracts X X X X ..... Supreme Court, to call a process as manufacture it should result in emergence of a new product with distinct name, character and use. In this case there is no doubt that ISRO has given a new name UH25. The question that arises is whether it has attained a different character and is for a different use. As regards use, there is no dispute that both UDMH and HH25 are used for the same purpose viz., as a rocket propellant or fuel. In the absence of any evidence to show that there is a change in the character of the product and use of the product, we cannot say that Department has been able to show that a new product, as per the definition of manufacture laid down by the Hon’ble Supreme Court, has emerged. In such a situation, when by mixing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Notification No.64/95-CE dated 16.3.1995 (Sl. No.7). From 2002 onwards, due to technological developments, ISRO asked the appellant to supply modified UDMH by simply mixing the same with bought out chemical called Hydrazine Hydrate (HH) in ratio of 75:25. The mixture of UDMH and HH was called/named as UH25. There is no dispute about the fact that UH25 as well as UDMH are used for the same purpose and there is no finding to the contrary also. There is no dispute regarding the eligibility of UH25 for the benefit of exemption under Notification No.64/95-CE dated 16.3.1995. 2.2 The dispute has arisen because the department has taken a view that the UDMH manufactured by the appellant and used for mixing with HH in the ratio of 75:25 has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of UDMH or UH 25 for the benefit of Notification No.64/95 at all and he agrees that this issue has been settled. We agree that it is possible to treat both the issues as different. 3.1 It was submitted by the learned Sr. Counsel that by mixing UDMH of 75% and HH of 25% and giving a new name UH25 to the extract cannot be said to have resulted in a new product. The product remains (propellant/fuel) with the same character and use. The advantage of adding HH was merely to increase the thrust and payload of the fuel employed for launching the rocket of ISRO. It was also submitted that this is analogous to diesel / petrol which is blended with additives for improved versions, but nevertheless called and remained diesel and petrol. It was subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... central excise duty, because all goods are not under levy of excise. Conversely, all the activities that amount to manufacture under Central Excise law are not a real manufacture in view of the (2) (3) entries of the definition of manufacture under Section 2(f). 26. As per Chapter Note-11 of Chapter 29 of the Tariff whereunder the impugned goods UDMH and UH-25, it was laid down as under: Chapter Note-11: In relation to the products of this Chapter, labeling or re-labelling of containers and repacking from bulk packs to retail packs or the adoption of any other treatment to render the product marketable to the consumer, shall amount to manufacture . (emphasis supplied). 27. In the instant case, the assessee did not co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , there is no dispute that both UDMH and HH25 are used for the same purpose viz., as a rocket propellant or fuel. The next question that arises is whether it has attained a different character. There is no answer at all. No chemical test has been conducted to find out whether chemical composition has changed because of mixing UDMH and HH. Whether the character of product has changed as per the understanding in the relevant industry has also not been examined and considered. In the absence of any evidence to show that there is a change in the character of the product and use of the product, we cannot say that Department has been able to show that a new product, as per the definition of manufacture laid down by the Hon ble Supreme Court, has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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