1992 (2) TMI 241

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....ading 3706 upto 1987 and under Heading 3707 after 1-3-1987. They also issued show cause notice to the respondents for having produced the goods without following Central Excise formalities and having cleared the same without payment of duty. The plea of the respondents that the goods were not dutiable as they cannot be said to be excisable goods was rejected and the Assistant Collector, Central Excise, Divn. G.I., Bombay-I Collectorate passed his order dated 24-1-1990 holding that the hypo-solution manufactured out of duty-paid granules amounts to manufacture of excisable goods, answering to description under Heading 3707.00 of Central Excise Tariff Act. This order of the Assistant Collector was challenged in appeal. The Collector (Appeals)....

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....on to hypo like primary components, hardeners, bisulite, buffers, boric acid which increases the fixing bath lifetime and also decreases the propensity for alum hardness to initial sludge formation. The Departmental Representative pointed out that the process above would show that the fixing bath is specially formulated product and not a mere solution of hypo in water. As such, the product "Hypo Bath" (Hypo-solution) is a different manufactured product and not mere solution of Hypo would attract excise duty under Heading 3707 CETA. 4. The respondents on the other hand have contended in their Cross Objection that the hypo-solution which is a ephemeral and which is prepared for instant use and which is not marketable and which has short shel....