1993 (9) TMI 192

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....asic pesticidal chemicals in highly concentrated form by addition of inert carriers/solvents and dispersing and stabilising agents to make them suitable for either direct use or after addition of water, amounts to manufacture within the meaning of Section 2(f) of the Central Excises and Salts Act, 1944. 2. On behalf of the appellant Shri Somesh Arora, learned JDR appeared before us. He contended that the process of addition of chemicals and other ingredients like inert carriers or solvents and also surface active, dispersing and stabilising agents to pesticidal chemicals in highly concentrated form would amount to manufacture within the meaning of Section 2(f) of the Act since it results in the emergence of a new and distinct product hav....

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....aning of Section 2(f) of the Act, since there was no transformation resulting in the emergence of any new or different article having distinctive name, character and use. On these grounds she pleaded for the rejection of the appeal. 4. We have examined the records of the case and considered the submissions made on behalf of both sides. It is seen that the only question that has to be decided is whether processing of pesticidal basic chemicals in concentrated form, namely, Malathion 50%, DDT 25%, Aldrin 30% and Diamethoate carried out by addition of inert carriers/solvents, surface active and dispersing agents and also stabilisers for diluting them and rendering them suitable for use either directly or after addition of water, amounted to....

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....nd merely because the pigment from its solid state has been converted into a liquid state by the use of solvent and made properly usable with the aid of the dispersing agent, an inference that a new product or commodity has been manufactured cannot be drawn. On the material that is available in this case, it is not possible for us to hold that the Foron liquid is obtained as a result of a manufacturing process or that it is an article which is distinctive in name, character and use. Foron liquid is merely a trade name but with the substance with its chemical composition. We are not, therefore, satisfied that the Department was justified in making a demand for excise duty on the basis that Foron liquid was a changed form of the pigment at th....