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2019 (9) TMI 274

..... ELD THAT:- Merely because of some processes are carried out on the raw Bees Wax to make the product in a presentable and better marketable form, without significant change in the character and use between the raw Bees wax and the cleaned/purified Bees Wax,the processes under taken resulted into manufacture - More or less in similar circumstance the Tribunal in the case of COMMR. OF C. EX., CHANDIGARH VERSUS MAHAVIR SPINNING MILLS LTD. [2000 (11) TMI 552 - CEGAT, NEW DELHI] while considering the question whether the process of producing Wax washers from duty paid paraffin Wax resulted into manufacture has held that no knew or different article or commodity is thus manufactured by them. The process adopted by them for changing the form of the wax from lump to washers cannot be equated to the process of manufacture. Also, there is no Section/Chapter Note, specifying such processes amounting to manufacture under Chapter 15 of Central Excise Tariff Act, 1985. Merely because the product ‘Bees wax’ is mentioned under Chapter Sub-Heading 1507, it cannot be considered that the processes carried out on the raw Bees Wax resulted into ‘manufacture’ within the definition .....

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..... artment aggrieved by the said Order of Tribunal filed an appeal before the Honourable High Court which was dismissed. In the impugned order, the learned Commissioner confirmed the demand of ₹ 17,19,948/-, imposed penalty of ₹ 13,07,000/- and fine of ₹ 50,000/- and penalties on other appellants. Hence, the present appeals. 3. The learned Advocate Shri M.H. Patil for the Appellants has submitted that from the same premise i.e. Plot No.W-251, MIDC, Phase-II, Dombivili (East), three units were operating during the relevant period i.e. September 1993 to February 1996. M/s Shree Laxmi Textile processors Pvt. Ltd (M/s SLTPPL for short) was manufacturing industrial fatty acids and industrial fatty alcohol under the name Sizole and emulsifying wax and also petroleum jelly. In the order dt.31.10.2006, the Adjudicating Authority held that Sizolefalling under CSH No.1505.00 is chargeable to Nil rate of duty. This finding was reiterated in the impugned order. M/s Shell Corporation purchased duty paid micro-crystalline waxes (MC waxes), flack waxes and carnauba waxes falling under CSH 2712.20 in different packings which were subjected to the process of melting, drying and packe .....

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..... Ltd - 2005 (186) ELT 385 (SC) 13. A.R. Thermosets Pvt. Ltd - 2016 (339) ELT 500 (SC) 14. Grasim Industries Ltd - 2011 (273) ELT 10 (SC) 4. Further, referring to the judgment of Hon ble Supreme Court in the case of Servo-Med Industries Pvt Ltd Vs. CCE, Mumbai 2015 (319) ELT 578(S.C), the Ld. Advocate Has submitted that in the said case sterilization of syringes and packing in plastic pouches for one time held to be not amounting to manufacture as no new product with different characteristic has emerged. It is also his contention that even if a product is specifically mentioned in the tariff entry, mere mention of the item in the schedule to Central Excise Tariff Act or even if process is indicated in tariff entry, the goods does not become excisable automatically unless it undergoes the process of manufacture as defined under section 2 (f) of CEA, 1944. In support of his argument, he has also referred to the judgment of Hon ble Supreme Court in the case of CCE Lucknow Vs M/s Wimco Ltd - 2007 (217) ELT 3 (SC) and in the case of Shyam Oil Cake Ltd Vs Collector of C.E., Jaipur - 2004 (174) ELT 145 (SC). 5. Further, he has submitted that if at all any duty liability on manufacture of t .....

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..... e this Tribunal. In the last order of this Tribunal, the matter was remanded to the Adjudicating authority, inter alia, to consider the issue whether the processes of melting, purifying, re-packing of the Bees wax and synthetic wax amounts to manufacture within definition of manufacture prescribed under section 2(f) of CEA,1944; secondly, the classification and rate of duty as applicable to fatty acids. 11. In the de-novo proceeding, the learned Commissioner, pursuant to the said direction has concluded that various processes applied to Bees wax resulted into manufacture , whereas the processes applied to synthetic waxes do not amount to manufacture, accordingly not excisable. The Commissioner has also held that the good sizole, is nothing but an industrial fatty acid, classifiable under Chapter Heading No.1505 of Central Excise Tariff Act, 1985which attracts Nil rate of duty. Therefore, the short question involved for consideration in the present Appeal is whether the process employed to Bees waxes by the Appellant has resulted into manufacture and hence the resultant finished goods also Bees wax is liable to duty. 12. The learned Commissioner, held that the process of melting, wa .....

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..... o washers cannot be equated to the process of manufacture keeping in view the test of manufacture laid down by the Apex Court in the above referred cases. Therefore, the impugned order of the Commissioner (Appeals) holding the product in question (wax washers) to be not dutiable being not a manufactured product is perfectly valid and deserves to be affirmed. 14. We also do not find any Section/Chapter Note, specifying such processes amounting to manufacture under Chapter 15 of Central Excise Tariff Act, 1985.Merely because the product Bees wax is mentioned under Chapter Sub-Heading 1507, it cannot be considered that the processes carried out on the raw Bees Wax resulted into manufacture within the definition of Sec. 2(f) of CEA,1944 in view of the principle of law laid down by Hon ble Supreme Court in the case of Shyam Oil Cake Ltd s case. Their Lordships observed as: 23. It was submitted that the decision in Aman Marble Industries case is not laying down the correct law inasmuch as it has not taken note of the amended definition of the term manufacture in Section 2(f). It was submitted that for a process to amount to manufacture it need not be so mentioned only in the Section or C .....

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