https://www.taxtmi.com/caselaws?id=428332 Processing base lacquer with colour solution, including testing, shade adjustment, fluidity measurement and occasional addition of pearls, was treated as manufacture because the process brought into existence a new commercially marketable product, namely nail enamel. The decisive test was not packaging or labelling but whether the inputs were transformed into a distinct marketable commodity under the relevant definition of manufacture and Chapter Note. On that reasoning, the area-based exemption under the notification dated 10.06.2003 remained available, and denial of exemption could not support demand, penalty or interest. en-us Mon, 19 Sep 2022 00:00:00 +0530 Thu, 29 Sep 2022 09:40:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=428332 Processing base lacquer with colour solution, including testing, shade adjustment, fluidity measurement and occasional addition of pearls, was treated as manufacture because the process brought into existence a new commercially marketable product, namely nail enamel. The decisive test was not packaging or labelling but whether the inputs were transformed into a distinct marketable commodity under the relevant definition of manufacture and Chapter Note. On that reasoning, the area-based exemption under the notification dated 10.06.2003 remained available, and denial of exemption could not support demand, penalty or interest. Case-Laws Central Excise Mon, 19 Sep 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=428332