TMI Blog2017 (7) TMI 715X X X X Extracts X X X X X X X X Extracts X X X X ..... dismissed - decided against Revenue. - E/278/08 & Cross Objection No.CO/06/09 - FO/A/76308/2017 - Dated:- 12-7-2017 - Shri P.K.Choudhary, Member(Judicial) And Shri B.Ravichandran, Member(Technical) Shri H.S.Abedin, A.C.(AR) for the Revenue Shri Ravi Raghavan, Ms.S.Chatterjee, Advocates for the Respondent ORDER Per: Shri B. Ravichandran Revenue is in appeal against order dated 14.02.2008 of Commissioner of Central Excise, Kolkata-III. 2. The respondents are engaged in the manufacture of products called Sika Latex and 'Sika Latex Power'. The dispute is the Central Excise duty liability of the respondent on these products. The Revenue entertained a view that the appellants have undertaken processes th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f appeal. He submitted that the raw material purchased by the respondent are capable of various usage. The process undertaken by the respondent is not a simple dilution by water. He further contested that if the raw materials and impugned goods are virtually same, the original manufacturer of the raw material can themselves undertake this process. He further submitted that the impugned goods are classifiable under chapter 38 and when applied with Note 9 of the said chapter, labeling, relabeling of the goods under chapter 38 will amount to manufacture. 6. Ld.Counsel for the respondent submitted that the impugned order has examined all issues in detail. The Revenue in the present appeal has not brought out any evidence to interfere with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the principle to the facts of the present case, we note that different tests conducted by the Revenue clearly indicated that the raw material as well as the impugned goods are having same chemical characters. This is not disputed. In such a situation the tests laid down by the Hon ble Supreme Court will fail in the present case. 9. Further examining the impugned order we note that the Commissioner analyzed all the relevant issues in great detail. The relevant portion of her finding is as follows:- The test report of the NATIONAL TEST HOUSE Govt. of India was considered to be crucial for decision of the issue in question. But the Report of the said authority as above, received by the Anti Evasion Unit on 2.11.2007, has not advanced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tured dutiable final products because of this activity in question, nor it is department's case that the so diluted and marketed items affected duty paid character of any other goods the assessee manufactured and cleared from the factory in its usual practice during any time of the material period under demand. Obviously, in case the products Styrofan and Apcotex were of CET CH. 38, the process undertaken at SIPL would render the Noticee liable for duty. but that isn t the case here. Thus, the facts converge to the position that duty- paid bought out goods of CET. Hd. 40.02, after the process undertaken by the Noticee retained the same characteristics without emergence of any new entity and the process of repacking or re-labeling of suc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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