9911796707
TMI Blog2008 (6) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... ard both sides. 4. The appellants were engaged in the activity of cleaning, purifying, blending and packing of duty paid Glucovita Glucose-D received from M/s. Corn Products Company (India) Ltd., Bombay, from bulk packs to retail packs, on job work basis. The issue involved is whether the processes undertaken by the appellants amounts to manufacture? This issue was decided by the lower authority in favour of the Revenue. The appellants agitated the issue and finally the matter was remanded to the Original Authority who passed the impugned order in the de novo proceedings. The period of dispute is from 1-3-1986 to 25-12-1989 and 1-5-1990 to 11-5-1990. The Show Cause Notice has been issued on 7-11-1990. In the de novo order also, the Adjudic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to the consumer shall amount to 'manufacture'. In the absence of any such Chapter Note., the processes undertaken cannot be treated as manufacture under Section 2(f) of the Central Excise Act as it existed then. He urged the point that the burden to prove that a process would amount to manufacture is on the Department. in this regard, he relied on the following Apex Court's decision : (i) CCE, Chandigarh v. Steel Strips Ltd. - 2003 (154) E.L.T, 336 (S.C.) (ii) Metlex (I) Pvt. Ltd. v. CCE, New Delhi - 2004 (165) E.L.T. 129 (S.C.) 5.2 The appellants sent samples of the input as well as the output to Shriram Institute for Industrial Research, Bangalore. The input contained 91% Glucose and the output 92%. This shows that both the samples a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -CX-1, dated 7-3-1990 stating that the duty paid Dextrose Monohydrate cleared in bulk under CSH 1702.19 when subjected to mixing with 0.6% of Calcium Phosphate and Vitamin D in a blending machine and re-packed in polythene pouches ranging from 100 gms to 500 gms and packed in printed cartoons would fall under classification of CSH 1702.21. In fact, the appellants were guided by the Circular No. B. 29/1/70-CX-II, dated 4-6-1970 issued by the CBEC according to which repacking of duty paid bulk Glucose and Dextrose into retail packs does not attract any further duty liability, even if some other ingredients are added before repacking. Hence, the appellants were under bona fide belief that the blending process that was carried out by them does ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount to manufacture. Only on 7-3-1990, a circular favourable to the Revenue was issued. Therefore, there is force in the appellant's contention that they were under the bona fide belief that the processes undertaken by them did not amount to manufacture. Once there is a bona fide belief, in terms of the cited case-laws, extended period cannot be invoked. Therefore, the major part of the demand is hit by time bar. Moreover, Board's Circular No. 7/90 dated 7-3-1990 cannot be applied with retrospective effect. Even in terms of the Board's Circular, only for the clearances w.e.f. 7-3-1990 to 11-5-1990, the appellants are required to discharge the duty liability As regards the rest of the period, even on time bar, the demands are not sustainab ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
