2017 (9) TMI 772

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....anufacture of Pigment, Glass Frit & Lacquers/Medium, etc. The appellants were issued with a Show Cause Notice dated 06/02/2007 wherein it was alleged that they were engaged in (i) Grinding & Mixing of Glass Frit under Heading No. 3207000, (ii) Dilution & Mixing of Prepared Inorganic Pigments under Heading No. 32071030 & (iii) Dilution & Re-packing of Cover Coats, Lacquer & Media under Heading No. 32081020. It was alleged that Grinding & Mixing of Glass Frit amounted to manufacture. Further, Dilution & Mixing of Prepared Inorganic Pigments amounted to manufacture and Dilution & Re-packing of Cover Coats, Lacquer & Media from bulk pack to small pack amounted to manufacture. Therefore, the appellants were issued with the said notice for demand....

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....packs amounted to manufacture in view of definition of manufacture provided under Section 2(f) of the Central Excise Act, 1944 since the emerging goods were classified under 30208 which is covered by the 3rd Schedule of the Central Excise Act, 1944. Aggrieved by the said order appellant is before this Tribunal. 3.  Heard the ld. Counsel for the appellant in respect of Dilution & Mixing of Silica Powder with the Pigments. He has submitted that this Tribunal in the case of Jayu Products Versus Collector of Central Excise, Bombay reported at 1994 (74) E.L.T. 158 (Tribunal) has held that if duty paid Ultra Marine Blue was mixed with China Clay as a dilutant then the process did not amount to manufacture. Therefore, he has pleaded that t....