2015 (10) TMI 2585

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....issioner (Appeals), Central Excise & Customs & Service Tax, Meerut I.  The other appellants are Director of M/s Dhampur Alco-Chem Ltd..  The details of the appeals are as follows: Sl.No. Appeal No. Party's Name Duty  (Rs.) Penalty   (Rs.) Redemption fine  (Rs.) 1. E/3862/06 M/s Dhampur Alco-Chem Ltd. 16,64,923/- 16,64,923/- (u/R-26 of CER, 2002)   2. E/3863/06 M/s Dhampur Alco-Chem Ltd.   32,703/- (u/R-26 of CER, 2002) 51,100/- 3. E/3864/06 Sorabh Gupta, Director   16,64,923/- (u/R-26 of CER, 2002)   4. E/3865/06 Sorabh Gupta, Director   32,703/- (u/R-26 of CER, 2002)   5. E/3866/....

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....ant was regularly filing prescribed returns with the revenue. As per the show cause notice dated 17.08.2004, it appeared to Revenue that the appellant although registered as a dealer, is engaged in labelling/relabelling of the goods which are repacked in containers. The repacking of the said goods from the bulk packs, to retail packs amounts to manufacture as per Chapter Note 11 of chapter 29 of CETA, 1985, whereas the appellant was not registered as a manufacturer with the Department and not paying  Central Excise  duty. The revenue officers visited the factory premises of the appellant of 27/6/2003 and found that all the goods/chemicals-Acetic Anhydride and Ethyl Acetate was found packed in jerry canes.  It appeared to Reve....

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....ed under Rule 26 of CER, 2002. 3.   The appellant contested the show cause notices stating that the activity did not amount to manufacture as they were not repacking the chemical from bulk pack to retail pack. The chemical was received through tanker lorries from the manufacturer of the chemical for trade and the same was emptied into drums/jerry cans/carboys as the process of receipt of the goods. Further, they were selling the chemicals to manufactures and not to consumers. Further, they have not adopted any treatment to render the product marketable to the consumer (end-user). Consumer is defined under the Consumer Protection Act as an individual or group of individuals, who buy the product for the own consumption or earning....

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....abeling or any other activity to make the product marketable and further the Apex Court further relied on the ruling in the case of CCE versus Johnson & Johnson Ltd. 2005 (188)  ELT 467  (SC) wherein by interpreting Note 5 of Chapter 30 which is similar to Note 10 of Chapter 28  held that mere packing for marketing would not amount to manufacture. That mere labeling or relabeling in the absence of any activity of repacking from bulk packs to retail packs would not render the product marketable directly to the consumer. 3.  The ld.A.R. for revenue relies on the impugned order. 4.  Having considered the rival contentions and relying on the ruling of the Honourable Supreme Court in the case of BOC Limited (supra)....