TMI Blog2019 (5) TMI 935X X X X Extracts X X X X X X X X Extracts X X X X ..... was held that The syringe and needle retains its essential character as such even after sterilization and no manufacture taking place. Thus, it can safely be inferred that the process of dilution of the raw materials STYROFAN D 623 AP and APCOTEX TSN 100 cannot be called as a process of manufacture. Consequently, the product Sika Latex and Sika Latex Power also not chargeable to excise duty. Appeal allowed - decided in favor of appellant. - Excise Appeal No. 1394 of 2007, 52 of 2009 - A/85887-85888/2019 - Dated:- 13-5-2019 - DR. D.M. MISRA, MEMBER (JUDICIAL) And MR. S. SRIVASTAVA, MEMBER (TECHNICAL) Shri Gajendra Jain, Advocate for the Appellant Shri Ajay Kumar, ADC, Authorized Representative for the Respondent ORDER Per: Dr. D.M. Misra These two appeals are filed against respective Orders-in- Appeal passed by the Commissioner of Central Excise (Appeals), Goa, since involve common issue, but for different period, are taken up together for disposal. 2. Briefly stated the facts of the case are that the appellants purchased duty paid Styrene Butadiene Latex f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .e. synthetic rubber is throughout finely distributed. The product sheet of the resultant materials namely, Sika Latex and Sika Latex Power describes them as Synthetic Rubber Emulsion . Thus, there is no change in the name of the product as the product continues to be synthetic rubber. Further, the expression Sika Latex and Sika Latex Power are their brand name and affixing these brand name does not change the name of the basic chemicals based on which the goods were bought and sold. He has contended that the change in name in excise parlance means the basic change of the product s name under which it is bought and sold and not merely the brand name of the product. In support, he has referred to the judgment of Hon'ble Supreme Court in the case of State of Orissa Vs. Titagarh Paper Mills 1985 Suppl SCC 280, Bush India Ltd. Vs. UOI 1980 (6) ELT 258 (Bom). 3.2 Further, the learned Advocate has submitted that the resultant products are merely diluted version of the starting material. The activity of dilution with water only reduce the solid content present in the starting materials since 40% of the solid content is to be relevant for end use applicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s same, therefore, the observation of the Tribunal at Kolkata is squarely applicable to the present appeals. Further, referring to various judgment wherein it has held that mere activity of dilution of water is not resulted into manufacture, the learned Advocate submitted that the confirmation of demand by learned Commissioner (Appeals) be set aside. 4. Learned AR for the Revenue reiterates the findings of the learned Commissioner (Appeals). 5. We have carefully considered the submissions advanced by both sides and perused the records. 6. The short issue involved in the present appeal for consideration is whether the addition of water to the raw materials namely, STYROFAN D 623 AP and APCOTEX TSN 100 is resulted into manufacture of Sika Latex and Sika Latex Power within the definition of manufacture under Section 2(f) of the Central Excise Act, 1944 and chargeable to duty. In confirming the process of mixing the said materials with water carried out by the appellant as manufacture , the learned Commissioner (Appeals) has reasoned that the product information submitted by M/s BASF Ltd., who supplied the materials STYROFAN D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cture. This is for the reason that the original article continues as such despite the said process and the changes brought about by the said process. (3) Where the goods are transformed into something different and/or new after a particular process, but the said goods are not marketable. Examples within this group are the Brakes India case and cases where the transformation of goods having a shelf life which is of extremely small duration. In these cases also no manufacture of goods takes place. (4) Where the goods are transformed into goods which are different and/or new after a particular process, such goods being marketable as such. It is in this category that manufacture of goods can be said to take place. 8. Applying the said ratio to the facts of the present case, it can safely be inferred that the present issue is covered under the second category of the aforesaid four categories inasmuch as the appellant could able to demonstrate that characteristics and chemical composition of the raw material namely, STYROFAN D 623 AP and APCOTEX TSN 100 continued to remain same even after addition of water to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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