9911796707
TMI Blog2018 (5) TMI 1450X X X X Extracts X X X X X X X X Extracts X X X X ..... ers. The unit of the appellant is adjacent to the manufacturing unit of SIEL Chemical Complex, Rajpura. M/s. SIEL Chemical Complex, Rajpura is engaged in the manufacture of hydrogen gas. The appellant receives 99.9% pure hydrogen gas. from SIEL through pipeline at a pressure of 1000 to 1200 mmwc. This gas is filled in returnable gas cylinders with identification marking of the appellant and sold to various consumers. Filling process is done with the aid of filter, dehydration and compressor. Earlier the appellant was registered with the excise department as manufacturer of excisable goods. In the year 2006, the appellant came to know that some other persons engaged in the filing and marketing of gas cylinders were not paying excise duty to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal). Further in a CEGAT order under case 2002 (146) ELT of M/s. Modi Alkalies & Chemicals Limited vs. Commissioner of C. Ex, New Delhi CEGAT has stated - "Manufacture - Compression and bottling of Hydrogen gas does not amount to manufacture as it did not bring about any change in classification of the gas from sub heading 2804.90 of Central Excise Tariff Act, 1985. Appeal allowed - Section 2 (F) of Central Excise Act, 1944 (1999 (107) ELT 364 (Tribunal) relied on Para 6). "Manufacture - process not bringing about change in classification under the tariff of product to which it is applied would not amount to manufacture - Section 2 (F) of Central Excise Act, 1944 (Para 6)". Earlier M/s. Royal Darshan Gases attached to M/s. Punjab Alkal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. With reference to the above letter dated 23.11.2006 of the Superintendent, Central Excise, range II, Rajpura, the noticee in their letter Ref. SAPPL/16/1815 dated 08.12.2006 stated as under:- "Hydrogen is sold to us through pipeline by M/s. SIEL Chemical Comlpex, Rajpura. This is compressed and filled in cylinders. We are not giving any treatment to the hydrogen to make the product marketable. We are neither labelling nor relabelling of containers nor repacking from bulk to retail pack." Thereupon, the noticee surrendered their manufacturer's registration. 6. The department was of the view that filling and marketing of hydrogen gas cylinders with label amounted to manufacture in view of Chapter Note 9 of Chapter 28 of Central Excise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of drying the moisture. The treatment employed by the appellant is oil filtration, removing moisture by gas by drying by the in-built system of compressing pressure gas into the cylinders. The allegation of the Revenue is that this activity renders the product marketable to the consumer. As the gas received by the appellant through pipeline is not usable or consumable. Therefore, the gas received in pipeline is not marketable to the consumer in the state in which it is received by the appellant. On examining the activity undertaken by the appellant, the issue before us is that "whether the activity of the compressor, oil filtration and removing moisture in gas by drying renders the gas marketable to the consumer" and consequently in terms o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ders is a similar activity and same shall not amount to manufacturing process. 11. Now the only issue remain before us is whether the activity undertaken by the appellant renders the product marketable to the consumer or not. The said issue has been examined by this Tribunal in the case of Shivam Industries (supra) wherein this Tribunal has observed in paras 6 & 7 as under : "6. There is no dispute about the fact that the appellants purchased duty paid transformer oil in bulk and after filtration and heating used the same for filing the cavities of the transformers being repaired as liquid insulator. According to the department, this process would be covered by the definition of manufacture under Section 2(f)(ii) of Central Excise Act, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cturers who are industrial users or manufacturers. Therefore, the same will not term as consumer. 13. In fact, they are the processors of the goods. In the case in hand, as the buyer are not 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. 14. In these terms, we set aside the impugned order and allow the appeals with consequential relief if any." 8. As the issue has already been settled by thi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
