2016 (8) TMI 1058

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....ate for the appellant Shri R.K. Manji, DR for the respondent ORDER Per V. Padmanabhan The appeal is filed against the impugned order dated 26.02.2008 passed by the Commissioner (Appeals), Delhi. The appellant is a manufacturer of various types of paints and thinner classifiable under Chapter 32 and 38 of the Schedule to the Central Excise Tariff Act. The paints and thinner are chargeab....

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....ppellant was charged with payment of excise duty for clearances made from depots, even though the base paint and tinter are cleared on stock transfer basis from the original factory after they were already charged to duty on MRP basis. The duty demand of Rs. 3,87,418/- was confirmed by the Original Authority along with penalties, which was upheld by the Commissioner (Appeals) in this impugned orde....

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....facture by the Lower Authorities. To appreciate this, we extract below, Section 2(f) of Central Excise Act:- "2(f) "manufacture" includes any process,- (i) Incidental or ancillary to the completion of a manufactured product; and (ii) Which is specified in relation to any goods in the Section or Chapter notes of [the First Schedule] to the Central Excise Tariff Act, 1985 ....

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....se processes are clearly covered by sub-section (iii) of Section 2(f). Consequently, the process undertaken by the appellant would amount to manufacture and excise duty will need to be paid, at the stage of the depot. 7. The ld. DR countered this and submitted that such a plea cannot be taken at this stage, not having been raised before the lower authorities. We also note that once base paint i....