TaxTMI 
TaxTMI 
2009 (12) TMI 454
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 5/2008-C.E. dated 30-9-2008 2 E/193/2009 M/s. Meghamani Organics Ltd. 6/2008-C.E. dated 30-9-2008 3 E/716/2009 M/s. Meghamani Agrodyne Pvt. Ltd. 5/2009-C.E. dated 26-3-2009 2. The relevant facts that arise for consideration in all these appeals are that the appellants herein had repacked/relabeled micronutrients with the brand name of 'Librel' from bulk pack to retail pack without payment of duty despite the said process of repacking/relabelling amounts to manufacture under the provisions of Central Excise Act, 1944. It is the allegation of the Revenue in the show cause notice that said product 'Librel' would fall under Chapter Heading No. 29224995 of the Central Excise Tariff Act, 1985 and by virtue of Chapter Note of Chapter 29....
X X X X Extracts X X X X
X X X X Extracts X X X X
....icate that packing, repacking or relabelling and any other process rendering the product marketable, would amount to manufacture. 4. Learned SDR on the other hand would submit that the product is marketable or not has to be ascertained. It is her submission that the chapter note will cover the issue against the appellant. She would submit that in an identical case Hon'ble Supreme Court in the case of CCE, Bangalore v. Karnataka Agro Chemicals - 2008 (227) E.L.T. 12 (S.C.), came to the conclusion that the addition of Nitrogen is a question which needs to be examined by the authorities and hence, coming to such a conclusion they remand the matter back to the lower authority. It is her submission that there is nothing on record to show that t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sis applied) at least one of the fertilizing elements nitrogen, phosphorous or potassium. The Department: has relied upon clarification issued by the Regional Fertilizer Control Laboratory, Chennai under cover of letters dated 30-10-2006 and 4-1-2007 that the products are micronutrient fertilizers under the Fertilizer-Control Order and incidentally contained small quantities of nitrogen because of the chemical composition and cannot be claimed as primary source of nitrogen, to hold that nitrogen is not an essential constituent so as to classify the goods under Chapter 31. However, we note that the International Institute of Biotechnology and Toxicology (IIBAT) has certified on 19-12-2006 that during the process of supply of potential micron....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t the product falls under Chapter Heading 29.22 of the CETA and confirming duty demand of Rs. 86,93,511/- together with Education Cess of Rs. 1,73,870/- on micronutrients repacked and relabelled by M/s. Swathi Organics & Chemicals (P) Ltd. and imposing penalties of Rs. 88,67,381/- on M/s. Swathi Organics & Chemicals (P) Ltd. and Rs. 9 lakhs and Rs. 4.5 lakhs respectively on its Managing Director and Executive Director and Rs. 7.50 lakhs on M/s. Ciba India Ltd. are also allowed, in the light of our finding on classification of the product under Chapter Heading 31.05 of the Customs Tariff as there is no deeming fiction in Chapter 31 of the CETA, 1985 that repacking and relabelling amounts to manufacture so as to give rise to duty liability of....