TMI Blog2002 (8) TMI 209X X X X Extracts X X X X X X X X Extracts X X X X ..... processing the dry fruit and peanuts and also carry out activities of clearance of Wheat Dalia, Rice Flips, roasted and spiced channa and channa dal in different pouches bearing brand name Yum-Yum and SKB; that the Additional Commissioner under Adjudication Order 81/98, dated 21-12-98 confirmed the demand of duty, imposed penalties besides confiscating the seized goods and ordering their redemption on payment of fine of Rs. 35,000/- that a personal penalty of Rs. 15,000/- has also been imposed on Shri Sudhir Kumar, Director under Rule 209A of the Central Excise Rules; that the Additional Commissioner has given his finding that various nuts are subjected to the process of roasting and salting/spicing and therefore salted, roasted/spiced nut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... banana paste and essence of apple and banana; that the mixture so obtained is again grinded in the grinder and roasted for about 25 minutes; that rice Flips are manufactured by passing small pieces of rice through excruder and Flips so obtained are mixed with spices in the mixer for uniform application; that the processes undertaken by them in respect of these two products also do not amount to manufacture as Dalia was obtained by simply grinding in the grinder and rice Flips are obtained by passing smaller pieces of rice through excruder. Finally, the learned Advocate submitted that the entire amount of duty has been paid by them on 6-11-97. He also relied upon the decision in the case of Sterling Food v. State of Karnataka and Another - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame and use of the product undergoes a change. Learned SDR also referred to Note 3 to Chapter 19 as well as Note 3 to Chapter 20 to the Central Excise Tariff which mentions that labeling or relabeling of the containers and repacking from bulk bags to retail bags or the adoption of any other treatment to render the product marketable to the consumer shall amount to manufacture. He finally submitted that as the Central Excise duty was not paid on the impugned goods, penalty is imposable on both the Appellants, that the redemption fine of Rs. 35,000/- in respect of goods valued at Rs. 2.09 lakhs is not on the higher side at all. 4. We have considered the submissions of both the sides. The various processes as mentioned in the adjudication Or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t one cannot absolutely make a thing by hand in the sense that nobody can create matter by hand, it is the transformation of the matter into something else and that something else is explained by degree whether that something else is a different commercial commodity having distinct function, character and use and name and commercially known as such". Supreme Court has further held in the said judgment that "if by application of labour and skill an object itself is transformed to the extent it is commercially known differently, it will suffice to say that manufacture has taken place for the purpose of Central Excise. The degrees of transformation and labour and skill spent are irrelevant." We, therefore find no reason to interfere with the f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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