2005 (3) TMI 563 - AT - Central Excise

Tribunal rules Spirulina tablet process not manufacturing under Central Excise Act

The Tribunal held that the conversion of Spirulina Powder into Tablet form did not amount to manufacture based on precedent and the definition of ... Spirulina Tablets - Classification of - Manufacture Issues:1. Whether the conversion of Spirulina Powder into Tablet form amounts to manufacture.2. Whether Spirulina Tablet is classifiable under Chapter 12 of the CETA Schedule or under Chapter 21 of the said Schedule.Analysis:1. The Tribunal examined the records and considered the two issues raised in the case. The learned Commissioner (Appeals) had classified Spirulina Tablets under SH 2108.99 as per the Revenue's claim. However, the appellants argued that a previous Tribunal decision had ruled that the conversion of Spirulina Powder into Tablet form did not amount to manufacture. They cited the case of Commissioner v. Twenty First Century Pharmaceuticals Pvt. Ltd., which was affirmed by the Supreme Court. Based on this precedent and the definition of 'manufacture' under the Central Excise Act, the Tribunal concluded that the conversion did not constitute manufacture. Therefore, the classification issue did not need to be addressed.2. Referring to the case of Sanat Products Ltd. v. Commissioner, where Spirulina Capsule was held to be a non-excisable natural product covered under Chapter 12, the Tribunal set aside the duty demand raised by the Revenue on Spirulina tablets. The Tribunal relied on established case law and ruled in favor of the appellants, allowing the appeal and overturning the impugned order. The decision was pronounced in open Court on 10-3-2003.