2007 (8) TMI 619

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... for the Appellant. Smt. A. Vasudev, Jt. CDR, for the Respondent. [Order per : Archana Wadhwa, Member (J)]. - The appellant is manufacturing pencils falling under heading 96 of Central Excise Tariff Act and attracting the duty at 'Nil' rate. Apart from pencils, the appellant are also manufacturing the PVA glue falling under heading 35.06. Prior to 1992, the appellants were also manufactur....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the present appeal requires us to decide is as to whether the activity of mixing colour in clear Nitro Cellulose Lacquer amounts to manufacture or not. As per the appellant, the said activity involves only a process of converting and mixing and does not result in emergence of new product. The clear Nitro Cellulose Lacquer gets converted into converted into coloured Nitro Cellulose Lacquer, but the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....enamel/emulsion with a stainer to obtain paint of different shades does not amount to manufacture within the Section 2(f) of the Central Excise Act, 1944. The learned DR reiterates the findings of lower authority and also draws our attention to the various decision in support of their contention that clear Nitro Cellulose Lacquer and coloured Nitro Cellulose Lacquer are two distinct products known....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....vident that mixing of colour paste in the clear Nitro Cellulose lacquer to convert the same into coloured Nitro Cellulose Lacquer would not amount to manufacture. The appellant's case is further supported by the Board's Circular No. 247/81/96-CX, dated 3-10-1996, clarifying that the process of tinting of duty paid base white paint with duty paid stainer to obtain paint of different shades would no....