1997 (1) TMI 267

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....td.) brought Aluminium Paste and availed of Proforma Credit benefit under Rule 56A for use in their finished product, Aluminium Paint. According to the Trade practice, the respondents pack the Aluminium Paste and the liquid medium in a dual but separate containers for being used as Ready Mixed Paint. The reason for putting the Paste and the Medium in separate containers is that if the Paste and the Medium are kept mixed in the single container, the mixture would get hardened and will be unfit for use. The Aluminium Paste cannot be used without mixing it with the Medium. Therefore, only immediately before using the two separate containers having been packed together in one container, the contents are mixed and then the Aluminium Paint is use....

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....he other component as "Medium for Aluminium Paint" and that the dual container containing these two is labelled just as "Al-Paint" and the instructions for mixing the Components to get the result of Aluminium Paint are also displayed. The consumers also buy it together as `Al-Paint" (Ready Mixed). 4.  The Revenue has also relied on a Special Bench `C' of the Tribunal's Order No. C-30/83, dated 21-2-1983 [1983 (13) E.LT. 998 (Tribunal)]. It is, therefore, urged by the learned J.D.R., Shri Roy that the appeals be allowed and the impugned Order be set aside. 5.  Opposing the contentions of the learned J.D.R., Shri Vasant Subramanyan, learned Consultant for the respondent company submits that they have a direct decision, so far ....

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.... 6. It has been held in short by the Tribunal in the said case of Kalinga Paints & Chemicals Industries, that putting two containers namely Aluminium Paste and Aluminium Medium in a single container does not amount to manufacture. It may well be that a final product, for a particular consumer's end use, emerges after the two are mixed by the consumer. Therefore, the goods as they are cleared, cannot be considered to be Ready Mixed Paints. In other words, the Judgment of the Tribunal in the case of Kalinga Paints & Chemicals Industries, virtually endorses the reasoning of the lower appellate authority in the present cases. 7. We shall now examine the Judgment of the Tribunal relied upon by the Revenue in the case of India Pain....