2017 (7) TMI 715

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....39;Sika Latex Power'. The dispute is the Central Excise duty liability of the respondent on these products. The Revenue entertained a view that the appellants have undertaken processes that amount to manufacture and accordingly the products cleared by the respondent should have suffered Central Excise duty. Verifications were conducted. Samples were drawn and tested in the CRCL Laboratory as well as National Test House, Alipore. Proceedings were initiated against the respondent to demand Central Excise duty under tariff heading 28344010 holding the product as damp proof or 'water proof compounds'. The respondent contested the demand and submitted that they did not undertake any process amounting to manufacture. The case was adju....

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.... 6. Ld.Counsel for the respondent submitted that the impugned order has examined all issues in detail. The Revenue in the present appeal has not brought out any evidence to interfere with the said finding. It is an admitted fact that the goods they procured from the manufacturers are having identical chemical characteristics and are capable of similar use of the impugned goods. The respondent is undertaking the process of dilution with water along with addition of certain preservatives for the purpose of marketing. They are affixing their own brand to facilitate marketing of the product. To apply Note 9 of chapter 38 the product should be first of all classified under chapter 38. He contested that their product cannot be called as damp pro....

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....dia was considered to be crucial for decision of the issue in question. But the Report of the said authority as above, received by the Anti Evasion Unit on 2.11.2007, has not advanced the department's case either. With detailed compositional analysis of the samples sent for test, it has been reported that the samples of Styrofan, Sika Latex and Sika Latex Power- all the three appear to be identical. Further, perusal of product literatures of Sika Latex and Sika Latex Power show that the same have various uses, including use a waterproofing / damp proofing substance in cement concrete applications. Similar use is available with the purchased items and this has featured in the Notice also. Thus as regards use of the goods, the inputs and ....