1997 (9) TMI 287

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....ondents were engaged in the manufacture of 'Plastics pulverised powder', classifiable under Heading 3901.90, out of duty paid plastic granules and were undertaking colouring of plastic granules on job work basis. It was noticed that they were not holders of Central Excise licence and were clearing the goods without payment of duty. Hence, a show cause notice was issued and the Collector of Central Excise adjudicated the case. The Collector (A) has, however observed that Chapter Note 6 was to be read in conjunction with Chapter Note 3 and held that no case was made out against the party before 1-3-1988 and dropped the proceedings. The department has come up in appeal against this order as Chapter Note 6 had been amended and in its amended fo....

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....e learned Vice President. According to me, the issue as to whether conversion of Polyvinyl Alcohol into solution amounts to manufacture, has been decided by the Tribunal's order in the case of Collector of Central Excise, Bombay v. Bright Brothers Ltd. reported in 1996 (84) E.L.T. 83 (T) = 1996 (64) E.C.R. 240 wherein it has been held that, in view of Note 6 to Chapter 39 of the Schedule to the Central Excise Tariff Act, 1985, conversion of one primary form viz. granules into another primary form viz. powder shall amount to manufacture. This order of the Tribunal has been followed in the case of Sinter Plast Containers v. Collector of Central Excise reported in 1996 (66) ECR 531. Therefore, in my view, the impugned order requires to be uphe....

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.... also argued that their pleas raised during the time of argument and in the cross objections pertaining to the eligibility to SSI exemption Modvat credit and other aspects have not been considered in the case of Bright and Brothers. It was also stated that the order of Hon'ble Vice President to propose the matter to Larger Bench is a correct one. There is no finding on all issues by Hon'ble Member (J). 9. On a careful consideration of the matter, I am inclined to agree with the order proposed by Hon'ble Vice President for referring the matter to the larger bench, as Member (J) has not dealt with other reliefs prayed by parties. The file to be placed before the original bench for passing a majority order.   Sd/-   ....