TMI Blog2004 (8) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... other gases classifiable under Chapter 28 of the CETA. In addition to the manufacture of these gases, they, during the period in dispute (1998-1999 to 2000-2001), purchased Helium gas from the market in cylinders and after conducting moisture control test, composition test, quality control test and other tests resulting in segregation of Helium gas into different grades having distinct properties and different market value/price, cleared the same to different types of buyers. The issue which falls for our consideration is as to whether these activities of the respondents amounted to manufacture or not in terms of Chapter Note 10 to Chapter 28 of the CETA. The said note reads as under :- "in relation to products of this Chapter, labelling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s amounted to manufacture as per the provisions of Chapter Note 10 of Chapter 28 of the CETA. 4.We have heard both the sides and gone through the record. The perusal of the record shows that the respondents purchased Helium gas in cylinders under a generic description from a dealer, M/s. Ajay Air Products, New Delhi @ Rs. 520/- per Cum. They thereafter in their own factory carried out various type of tests on the gas contained in those cylinders, by opening the cylinders. The test carried out by them were regarding pressure, moisture contents, physical and chemical composition to determine the constituents of the gas. They also did the purification of the gas. These facts were even admitted by Shri S.S. Mondol, Quality Control Officer a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... along with each cylinder at the time of the sale to a consumer, containing all the details regarding the moisture, purification, quality, also amounted to relabelling of the gas cylinders. For relabelling purposes, it is not essential that label should be re-fixed on the article, it would be enough if the same is issued along with the item to the consumer. 7.Therefore in the light of above discussion, the activities of the respondents carried out in respect of the plain gas cylinders detailed above amounted to manufacture in terms of Chapter Note 10 of Chapter 28 of the CETA, referred to above. 8.The ratio of the law laid down in Lakme Lever Ltd. (supra), referred by the Counsel, is not attracted to the facts of the present case. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmercially different types of Helium gas cylinders. Their representative, Shri Harjeet Singh avoided to answer this query when put to him at the time of recording his statement by taking a shelter behind the plea of so-called trade secret. In Chowgule and Company [1993 (67) E.L.T. 34 (S.C.)], the Apex Court has observed that whatever may be the operation, it is the effect that is material. These observations can be read with advantage in this case, keeping in view, the refusal on the part of the representative of the respondents to disclose, the details, and the nature and purposes of the tests detailed above carried out by the respondents on the Helium gas cylinders purchased from the market, for selling to their different types of buyers. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 001 whereas the show cause notice was served on the respondents on 5-7-2002. But this contention of the ld. Counsel cannot be accepted as there was suppression of facts by the respondents from the department. They never disclosed the details of the activities being carried out by them in respect of purchased Helium gas cylinders from the market. No duty was ever paid by them since December, 1998 when the first clearance of the Helium gas was made by them from their factory premises. The plea of ignorance of law also cannot come to their rescue as they were already engaged in the manufacture of Oxygen, Nitrogen and other gases classifiable under Chapter 28 of the CETA. They very well knew that their activities resulted in the manufacture of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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