2016 (6) TMI 232

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....ly stated, are as under: M/s Zeal Agro Chem (P) Ltd.. 76/1, Industrial Estate, Maksi Road, Ujjain was manufacturing a product (powder) called Body Plus marketed by Rachna Health Care Pvt. Ltd. which owned the brand name Body Plus.  The said product was cleared by M/s Zeal Agro Chem (P) Ltd., Maksi Road, Ujjain (hereinafter referred to appellant No. 1) in bulk without putting any brand name thereon.  These goods in bulk were transferred to M/s Zeal Agro Chem (P) Ltd.'s godown about 20 km away from  appellant No. 1 where these bulk goods were repacked in containers of 200 gms and labelled with the brand name Body Plus and cleared therefrom.  The show cause notice alleged that against classification under CTH 19.01 claim....

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....statement had agreed that the impugned goods were liable to duty @ 16% ad. val. under Chapter 2108.99 and that sending the goods in bulk to godown at Badarkha Babaji to repack and put the brand name was only a modus operandi to evade payment of duty and Badarkha Babaji godown was nothing but an extension of the factory at Maksi Road, Ujjain. 5.  We have considered the contentions of both sides.  At the very outset it needs to be noted that as per chapter notes 7 of Chapter 21 and Chapter Note 3 of Chapter 19 in relation to products covered under the said chapters, labelling or relabelling of containers and repacking from bulk packs to retail packs amounts to manufacture.  Therefore the operation carried out in the godown a....

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....ha Babaji which is 20 km away from appellant No. 1 (Maksi Road) is an extension of factory at Maksi Road.   As regards the clearances of the impugned goods from factory at Maksi Road, Ujjain to which the show cause notice demanding impugned duty was issued, it is clearly stated in the show cause notice itself that the goods there-from were cleared in bulk in unbranded form in 25 kg packs.  In other words, the clearances of the impugned goods from factory at Maksi Road, Ujjain (appellant No. 1) were not of branded goods.  That being the case, we now come to the issue of classification.  The show cause notice mentioned  classification of the impugned goods under CTH 2108.99.  For ease of reference descriptio....