2016 (9) TMI 573

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....ogen from M/s. Punjab Alkalies & Chemicals Pvt. Ltd. Naya Nangal through pipeline. The gas so received is filed is returnable gas cylinders with identification mark of the appellant and sold to various consumers who are manufacturer of Vanasapati Ghee. The filling process is done by the appellant with the aid of filter, dehydration and compressor. Revenue is of the view that activity undertaken by the appellant amounts to manufacture. Therefore, they are liable to pay duty on gas cylinders. Consequently, various periodical show cause notices were issued to the appellant which was adjudicated and duty was demanded along with interest and equivalent amount of penalty was also imposed. Aggrieved from the said orders, appellant is before us. 3....

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....-built system of compressing pressure gas into the cylinders. The allegation of the Revenue is that this activity renders the product marketable to the consumer. As the gas received by the appellant through pipeline is not usable or consumable. Therefore, the gas received in pipeline is not marketable to the consumer in the state in which it is received by the appellant. On examining the activity undertaken by the appellant, the issue before us is that "whether the activity of the compressor, oil filtration and removing moisture in gas by drying renders the gas marketable to the consumer" and consequently in terms of Chapter Note 9 of Chapter 28 of the Central Excise Tariff Act, 1985, the activity of the appellant amounts to manufacture or ....

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....ssue remain before us is whether the activity undertaken by the appellant renders the product marketable to the consumer or not. The said issue has been examined by this Tribunal in the case of Shivam Industries (supra) wherein this Tribunal has observed in paras 6 & 7 as under : "6. There is no dispute about the fact that the appellants purchased duty paid transformer oil in bulk and after filtration and heating used the same for filing the cavities of the transformers being repaired as liquid insulator. According to the department, this process would be covered by the definition of manufacture under Section 2(f)(ii) of Central Excise Act, 1944 read with Chapter Note 4 of Chapter 27 of the Central Excise Tariff. 7. Under Sect....