TaxTMI 
TaxTMI 
2016 (9) TMI 425
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....entrate falling under various chapter sub headings of the Central Excise Tariff Act, 1985. The appellant was availing the benefit of small scale industry exemption notification under Notification No. 8/2003-CE dated 01.03.2003 as amended and filed declaration as required in the notification declaring the aggregate value of clearance of the specified goods, viz 'isolated soya protein'. There is no dispute that the other products viz. milk powder and ghee are totally exempted from payment of duty. Revenue took the view that the product isolated soya protein was chargeable to duty under heading 35.04 of Central Excise Tariff Act, 1985. After carrying out investigation against the appellant, a demand of Rs. 25,50,2....
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....rocess does not transform the soya flour into a new product. The raw material is edible soya flour and it is claimed to remain the same in substance and content. It is further submitted that during the process only in-soluble impurities are removed but the product content in substance continues to remain the same. Further, they have submitted that it is technically an admitted position that the commodity soya flour holds and contain 90% of the protein. Since no other element/ commodity holding the protein content is added in the process directly or indirectly, hence the process does not amount to manufacture in terms of the provision of Section 2(f) of the Central Excise Act. They have further claimed tha....
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....hange in chemical composition of the raw material arising in emergence of a new product i.e. "Isolated Soya Protein". The appellant's plea that removal of impurities by lowering and increasing P.H. is not correct and cannot be accepted. The change of chemical composition through chemicals resulting in emergence of a new product alongwith some physical process of wasting, decant ring and drying are nothing but the process carried out amounting to manufacture". 4. Heard Shri Rajesh Rawal, ld. Advocate for the appellant and Dr. Mrs. Neha Garg, ld. DR for the Revenue. Ld. Counsel for the appellant reiterated the process of manufacture and took us through the various case laws to thrust th....
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....shion, the process of making protein isolates starting from defatted soya flour which is as under: "2.3 Protein Isolates Isolates are the most refined forms of soya protein. Defatted flours are processed one step further then the concentrates by removing the water isoluble polysaccharides as well as the water soluble sugars and other minor constituents. The isolates are made from undenatured defatted flakes by extraction with dilute alkali. The slurry is centrifuged to remove the proteins precipitate as curd. After washing, the curd may be spray dried directly to yield isoelectricprotein. Generally the curd is neutralized to pH 6.8-7.2 and then spray dried to yield proteinate form. ....
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....r process amounts to manufacture. "Manufacture implies a change, but every change is not manufacture and yet change of an article is the result of treatment, labour and manipulation. But something is necessary and there must be transformation; a new and different article must emerge having a distinctive name and character of use". 8. When we apply the above yardstick to the facts of the present case, there is very little doubt that, a new product, viz isolated soya protein which is perceived differently and which has a name, character and use which is totally different from the raw material namely soya flour, has come into existence. 9. In the light of the above, we have no hesitation in co....