TMI Blog2016 (1) TMI 1055X X X X Extracts X X X X X X X X Extracts X X X X ..... consumer as per Chapter Note 9 of Chapter 28 of CETA, 1985. Further, we also hold that the gas is already marketable in its original form and the activity undertaken by the appellant does not render the gas marketable which is already marketable. Therefore, we hold that the activity undertaken by the appellant does not amount to manufacture. Consequently, the appellant are not liable to pay duty. - Decided in favour of assessee. - E/2865-2866/2011-EX(DB) and E/52196/2014-EX(DB) - Final Order Nos. A/52666-52668/2015-EX(DB) - Dated:- 11-8-2015 - Shri Ashok Jindal, Member (J) and B. Ravichandran, Member (T) Shri B.L. Narsimhan, Advocate, for the Appellant. Shri M.S. Negi, DR, for the Respondent. ORDER [Order per : Ashok ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the Chapter 28 of the Central Excise Tariff Act, 1985. In their own case for the earlier period reported in 1999 (107) E.L.T. 364 (Tri.) has observed that the appellant are receiving the hydrogen gas and they are filling hydrogen gas in cylinders after compressing the same and also observed that the compressed hydrogen gas and other hydrogen gas are the same. Therefore, it was held that no new commodity has come into existence by merely filling of hydrogen gas into the cylinders. In these circumstances, this Tribunal held that activity undertaken by the appellant does not amount to manufacture. He also submits that in their own case reported in 2009 (246) E.L.T. 173 (Tri.-Chennai) has again examined the issue and held that the activi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssions. 6. In this case before going to frame the issue we are recording the activity undertaken by the appellant which is as under : The appellant is receiving Hydrogen Gas through pipeline. They compress it and fill it into cylinders at required pressure with the help of compressor run with the aid of power and it is known as compressed hydrogen gas in cylinders. The compressors installed in the premises compresses the gas at different pressure and finally at the pressure 140kg/cm for filing into cylinders each compressor is oil lubricated. In order to avoid passage of oil into gas the compressors is in built system of oil filtration. The gas received by the appellant through pipeline has some amount of moisture and in order to remo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case in hand as per Chapter Note 9 of Chapter 28 of the CETA, 1985 the activity of compressor does not amount to manufacture. Now the short issue before us whether the activity undertaken by the appellant rendered the product marketable to the consumer or not. 9. The main thrust of the ld. AR is that the appellant is engaged in the activity of packing/repacking from bulk to smaller packs. In fact, that is not the case of the department as per the show cause notice. Therefore, the case laws relied upon by the ld. AR are not relevant to the facts of this case. 10. We have also seen that in the case of Ammonia Supply Company (supra), this Tribunal held that Ammonia gas from bulk packing to smaller container will not amount to manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption of any other treatments to render the product marketable to consumer would not cover an industrial user or manufacturer who process the transformer oil/lubricants for his own industrial use. In this case, the appellant had subjected the transformer oil purchased by them to the process of filtration and heating to make it suitable for their own industrial use i.e. for repair of the transformers. The process undertaken by the appellant thus, does not amount to manufacture and as such the impugned orders are not sustainable. The same are set aside. The appeals are allowed. 12. We have seen that in the case of Shivam Industries (supra) this Tribunal has observed that the adoption of any other treatment rendered the product marketable ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
