TMI Blog2004 (10) TMI 191X X X X Extracts X X X X X X X X Extracts X X X X ..... f excisable goods, if so, the appropriate classification of the resultant goods under CETA. 4. The process of manufacture carried out with the aid of power is somewhat as follows :- Guar, dal powder stored in raw material godown was put into a blender to which additives like saw dust, TKP were added in required quantities. Then the mixture is blended for some time. After mixing/blending the materials thoroughly, the same is packed in 50 kgs bags. Shri R.P. Gupta, Managing Director, deposed that the blender was operated with the aid of power. Further, he deposed that they had two blenders and other equipments installed at factory and stacker machine for filling the bags, stitching machine for stitching the bags etc. He also deposed that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, it is the effect of the operation on the commodity that is material for the purpose of determining whether an operation carried out on goods constitutes a process of manufacture. Applying this ratio, we find that the process carried out on guar dal in the present case amounts to manufacture. While coming to this conclusion, we also follow the ratio laid down by the Supreme Court in the case of CCE, Bombay v. S.D. Fine Chemicals Pvt. Ltd [1995 (77) E.L.T. 49 (S.C.)]. 7. The next issue pertains to classification of guar gum. The rival entries are found in Chapter 11 and 13 of CETA. We have heard the rival contentions. The Revenue seeks to classify the goods under Chapter 13 as gum but the appellants argue in favour of Chapter 11 as a pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a gum falling under Chapter Heading 13.01. The ground taken by the Tribunal is that the Board in its circular dated 14-8-1986 clarified that tamarind kernel powder is classifiable under Chapter 11 as a product of milling industry. 9. The learned Advocate for the appellants argued that Chapter Heading 13.01 which reads as lac; gums, resins and other vegetable saps and extracts though speaks of gum, covers only such gums derived from vegetable saps and extracts. After gums, resins the expression used in the heading is 'and other vegetable saps and extracts' which only means that gum and resins which are derived from saps and extracts are covered here. He argued that the meaning of expression gum, resins should be read with the expression ' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13.01. That assumption looked from the angle of words and phrases used in Heading 13.01 as pointed out by the learned Advocate, does not appear to be correct. Secondly the Tribunal in that case agrees that tamarind kernel powder, a gum, falls under Chapter 11 as a product of milling industry. Thus, the Tribunal in the Dilip Gum's case agrees that all gums do not fall under Chapter 13 as otherwise it would have found that tamarind kernel powder also falls under that chapter. We, therefore, respectfully observe that the decision in Dilip Gum Industries does not come as a binding precedent, the ratio of which has to be followed. We hold that guar gum powder falls under Chapter 11 as a product of milling industry attracting 'nil' rate of duty. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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