1998 (4) TMI 193

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....amaged condition for re-processing and is not dutiable. He has noted the appellants submissions that the instant coffee is manufactured from duty paid coffee beans which are roasted and granulated and mixed with chicory roasts and then extracted and spray dried to form instant coffee. In the present case, in the damaged clotted instant coffee, the appellants carried out re-processing by emptying the damaged packets and dissolving them in hot water and then spray drying the same and once again pack them in new packets. The Commissioner also held that the A.C. mis-directed himself with regard to the re-processing of clotted coffee as given by the assessee and that re-processing does not involve grinding of coffee seeds, roasting and granulati....

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....ion of the issue and issued order based on the party's after-thought statement placed before him." 3. Arguing for the appellants, the learned DR submits that it is a fresh process carried out by them and such fresh process results in marketable commodity and therefore, it has to be held as a process of manufacture calling for imposition of duty. 4. The learned Advocate submits that the duty had already been paid on the goods which had left the factory. Due to some defects the goods had come back under proper procedure. The assessee has followed the procedure for receiving back the said goods and they merely added water and dried them to remove the clotting in the granulates. Since the quantity received back had already duty paid....