https://www.taxtmi.com/caselaws?id=106683 Mere mixing of water with purchased gum powder to obtain liquid gum for captive use did not amount to manufacture under central excise law, because no new distinct marketable product emerged and the activity did not make an otherwise unmarketable product marketable under Chapter Note 3 of Chapter 35. A duty demand could not be sustained by relying on a note not invoked in the show cause notice. Paper cutting waste generated incidentally during corrugated box manufacture was not independently manufactured goods, so no separate excise duty arose on that waste. The connected penalties, including the manager's penalty, also failed once the duty demands were set aside. en-us Wed, 21 Aug 2002 00:00:00 +0530 Thu, 15 Mar 2012 12:16:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=106683 Mere mixing of water with purchased gum powder to obtain liquid gum for captive use did not amount to manufacture under central excise law, because no new distinct marketable product emerged and the activity did not make an otherwise unmarketable product marketable under Chapter Note 3 of Chapter 35. A duty demand could not be sustained by relying on a note not invoked in the show cause notice. Paper cutting waste generated incidentally during corrugated box manufacture was not independently manufactured goods, so no separate excise duty arose on that waste. The connected penalties, including the manager's penalty, also failed once the duty demands were set aside. Case-Laws Central Excise Wed, 21 Aug 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=106683