https://www.taxtmi.com/caselaws?id=34505 Mechanical mixing of a small quantity of polymer with duty-paid bitumen, used immediately for road construction and kept under hot stirring, did not create a new commercially distinct or marketable product. The material retained the character of bitumen, so the process was held not to amount to excisable manufacture and no central excise duty was payable. On demand and penalties, the record showed a bona fide dispute on taxability, supported by contrary departmental views and a circular, so invocation of the extended period was unjustified and penalties could not stand. The impugned order was set aside and consequential relief granted. en-us Thu, 25 Sep 2008 00:00:00 +0530 Mon, 07 Sep 2009 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=34505 Mechanical mixing of a small quantity of polymer with duty-paid bitumen, used immediately for road construction and kept under hot stirring, did not create a new commercially distinct or marketable product. The material retained the character of bitumen, so the process was held not to amount to excisable manufacture and no central excise duty was payable. On demand and penalties, the record showed a bona fide dispute on taxability, supported by contrary departmental views and a circular, so invocation of the extended period was unjustified and penalties could not stand. The impugned order was set aside and consequential relief granted. Case-Laws Central Excise Thu, 25 Sep 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=34505