TaxTMI 
TaxTMI 
2009 (8) TMI 1060
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....reon and equal amount of penalty has also been imposed. The appellants are engaged in manufacture of medical, surgical instruments and appliances and they are also engaged in importing, sterilising and packing of needles/bulk needles which fall under Chapter Heading No. 9018.00 of Central Excise Tariff Act, 1985. The appellants availed Cenvat credit on the inputs used in the manufacture of dutiable products and cleared from the factory and appropriated the said goods as dutiable goods cleared from the factory for the period from March, 2007 to November, 2008. The appellants cleared precision glide needles 5000 PK/bulk needles without payment of Central Excise duty on assumption that the process of sterilisation and packing performed after i....
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.... of Cenvat credit available on the inputs in case the process is held to be manufacture. 3. On the other hand, it is the case of the department that the process of sterilisation change the identity of the product and it is also marketable not as a normal needle but a product which has specialised qualities and used for specific purposes. Besides, according to the respondents in respect of earlier period, the department has taken a similar view and that it is under challenge before the Tribunal, the same has not been disturbed at. 4. The learned Counsel appearing for the appellants placing reliance in various decisions submitted that process of sterilisation in no manner changes the identity of the product and needle remains the needle ev....
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....ance with that of the Supreme Court on the aspect of concept of manufacture within the meaning of the said expression under the said Act. He also submitted that the decision of the Tribunal in stay matter in appellant's own case in earlier appeal was essentially in terms of Servo-Med. Ind. Pvt. Ltd. without taking note of the Supreme Court decision which is sought to be relied upon in the matter in hand. 6. Learned DR, on the other hand, submitted that the process of sterilisation apparently discloses the manufacturing activity inasmuch as that the product pursuant to such process attains separate and distinguished identity as well as marketability for specific class of purchasers, Further, drawing our attention to earlier decision in stay....
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....s distinguishing factor of identity of needles as a result of process of sterilisation prima facie discloses the activity of sterilisation tentamount to manufacture within the meaning of the said expression under the said Act and therefore, we do not find any justification for grant of stay of the impugned order. As far as decision of the Apex Court in PIO Food Packers case is concerned, it has been clearly held that, "The generally prevalent test is whether the article produced is regarded in the trade, by those who deal in it, as distinct in identity from the commodity involved in its manufacture." It was further held that, "where there is no essential difference in identity between the original commodity and the processed article it is n....