1995 (7) TMI 208

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....l dated 5-1-1987 passed by the Assistant Collector of Central Excise Division K/II, Bombay I Collectorate. By the said order-in-original, the Assistant Collector had rejected the appellants' claim for treating following products, namely - 1. E-Ray Powder developer. 2. Lith Powder developer. as non-excisable and not falling under Chapter sub-heading 3706 .00. He has also rejected the appellants' claim for full exemption of duty to the "Photographic Mounts" (i.e. Printer and/or Embossed paper Boards). 2. When the matter was called, none was present for the appellants, who have sought decision on merits. They have contended that the products X-Ray developer powder and Lith developer powder are made from bought out ch....

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.....18 CETA. 3. The written submissions of the appellants and the oral arguments put forth by the ld. D.R. have been carefully considered. In respect of the products X-Ray powder developer and powder fixer and Lith powder developer the appellants' arguments are two-fold. First, that they are made by physical mixing of duty paid chemicals and some preservatives involving no chemical reaction. No new product, they say, emerges as a result, and hence no "manufacture" has taken place to attract excise duty. Secondly, these goods cannot, according to them, be called put up in a form for ready use. This is because the goods are in powder form and unless these are dissolved in water, changed from solid to liquid form, they cannot be used for ....

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.... the raw material chemicals and commercially the emergent developer powder can no longer be regarded as the chemicals of which they are made because of the process of mixing in fixed proportions and being packed in sets for the purpose of being marketed as developer powders for photographic uses. Thus it is held that these goods are new articles coming into existence as a result of processes which amount to "manufacture". Taking up the second contention of the appellants, the Heading 37.06 CETA 1985 reads as : "chemical preparations for photographic uses (other than varnishes, glues, adhesives, and similar preparations); unmixed products for photographic uses, put up in a form for ready use it is seen that the criterian of the article being....