TMI Blog2004 (1) TMI 202X X X X Extracts X X X X X X X X Extracts X X X X ..... s are manufacturers of rosin and turpentine oil. They filed a classification declaration effective from 1-4-2001 classifying the goods under chapter sub-headings 3806.19 and 3805.19 respectively and claimed nil rate of duty as the goods are manufactured without the aid of power. The Deputy Commissioner however decided that the products are not entitled to 'nil' rate as power is used in their manufacture. This he seemed to have done without giving any opportunity to the appellants to put forth their case. 3.The Commissioner (Appeals), before whom the dispute came up, upheld the decision of the Deputy Commissioner after going into the process of manufacture of the said products. The process of manufacture of the products as discussed by him ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.The Commissioner (Appeals) holds that the above process clearly shows that power is used in the manufacture of the goods in question. His reasoning is as follows :- ".....it is clear that segregation of Turpentine oil from Rosin and the cleaning of tanks by using water are processes which are integrally connected to manufacture of Turpentine oil and Rosin. The water constitutes an important ingredient in the process adopted by the appellants for manufacturing of Rosin and Turpentine oil and since the appellants are using power operated pumps to lift water first from the well to the overhead tank it cannot be said that in the manufacturing process no activity is carried on with the aid of power." He rejected the appellants' plea that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g as the use of power is limited to drawing water into a cooling tank through condensation coils pass, manufacture of rosin cannot be said to be with the aid of power for the purpose of Notification No. 179/77-C.E., dated 18th June, 1977 M.F. (D.R.) Letter No. B. 36/11/77-TRU, dated 10/16-1-1978." 7.The learned Advocate argued that this clarification is binding on the department irrespective of what is ruled by various Courts on the subject. The departmental representative relied on the decision of the Supreme Court in the case of CCE v. Rajasthan State Chemical Works - 1991 (55) E.L.T. 444 (S.C.) wherein the Apex Court while interpreting the same notification rejected the contention that power is used only in handling operations and not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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