Manufacture and limitation in paint tinting dispute: pre-deposit waived and recovery stayed pending appeal.

Tinting of base white paint at depots by mixing colourants was found prima facie not to amount to manufacture because the base paint appeared independently marketable and the addition of colourants did not necessarily create a further manufacturing process. The Tribunal also found prima facie support for the plea that the demand was time-barred, having regard to the period covered by the show-cause notice and its date of issue. On that basis, pre-deposit of duty and penalty was dispensed with and recovery was stayed pending appeal.

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Issues: Whether the process of tinting of base white paint at depots by mixing colourants amounted to manufacture, and whether the demand was prima facie barred by limitation.

Analysis: The Tribunal found prima facie support for the contention that the base white paint was independently marketable, and that mere addition of colourants would not necessarily amount to a further manufacturing process. It also found prima facie force in the plea that the demand was time-barred, in view of the period covered by the show-cause notice and the date of its issue.

Outcome: Pre-deposit of the duty and penalty was dispensed with and recovery was stayed during the pendency of the appeal.

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