2006 (7) TMI 479

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....ate, for the Appellant. Shri Umashankar, SDR, for the Respondent [Order per : K.K. Agarwal, Member (T)]. -  The appellants are engaged in the manufacture of motor spirit which is cleared by them on payment of appropriate duty. They also blend 5% ethanol with 95% motor spirit to get 5% ethanol blended motor spirit (EBMS). In the refinery itself, by two separate pipelines, motor spirit....

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....in the manufacture of EBMS. The duty was confirmed by the Commissioner on the above two grounds. 2. The learned Advocate submits that the blending of ethanol with motor spirit does not amount to manufacture and this has also been clarified by the Board vide its Circular No. 83/84/94-CS, dated 13-12-94 wherein it has been specifically stated that methanol and ethanol are used as blends with....

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....d to Tribunal decision in the case of Indrol Lubricants & Specialities Ltd. v. Commissioner of Central Excise, Calcutta, 1999 (111) E.L.T. 544 (Tribunal) wherein it was held that blending of two or more duty paid blended or compounded lubricating oils with or without addition of additives not amounts to 'manufacture'. 4. Heard both sides. 5. We have considered the submissions. We f....