TaxTMI 
TaxTMI 
2018 (11) TMI 811
X X X X Extracts X X X X
X X X X Extracts X X X X
....l while the other appeals are by the assessee against the order challenging the leviability of excise duty on the products and by the officers of the assessee against the personal penalties imposed on them. 2. Heard both sides and perused the records. The assessee appellant procured used lubricant oil from many refineries and Indian Oil Corporation which they repacked and sold including some after blending and some after addition of additives, heating and filtering. The relevant period is 1994-95 and 1997-98. Show cause notices were issued alleging that these activities will amount to manufacture under section 2(f) of Central Excise Act, 1944 and therefore demanding central excise duty. It is also proposed to confiscate the goods that were....
X X X X Extracts X X X X
X X X X Extracts X X X X
....g preparations of heading No. 27.10, labeling or relabeling of continers and repacking from bulk pack to retail packs or the adoption of any other treatment to render the product marketable to the consumer shall amount to "manufacture." Before the introduction of this chapter note to Chapter 27, these processes, evidently did not amount to manufacture and a legal fiction was, therefore, created. He further submits that subsequently this chapter note was renumbered as chapter note '4'. A clarification was also issued by CBEC vide circular No. 1024/12/2016-CX, dated 11.04.2016, relevant portion is as follows: " Manufacture .4. Waste oil after processing may become lubricating oil but this process would not amount to manufacture in view of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....00 and not before. He relied on the case of Indian Oil Corporation [2015(324) ELT 633 (SC) in which Hon'ble Supreme Court held that repacking of lubricating oils into smaller packs does not amount to manufacture till the introduction of chapter note w.e.f. 01.03.2000. He also relied on the judgment of Hon'ble Supreme Court in the case of Mineral Oil Corporation [2002(140) E.L.T. A248 (S.C.)] in which Hon'ble Supreme Court upheld the decision of the Tribunal that the reclamation of transfer oil from used transformer oil does not amount to manufacture. He also relied on the following other case laws, which held the same position: (a) CCE vs. Crescent Chemical Corpn. [1990(48) ELT 458 (Trib.)] (b) Bangalore Petroleum & Chem. Pvt. LTd. [2000(....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ecided is whether these activities amounted to manufacture during the relevant period i.e. prior to the introduction of chapter note 9 to chapter 27 of the Central Excise Tariff. Evidently, if these activities already amounted to manufacture there would have been no need to introduce the aforesaid chapter note creating a legal fiction that labelling, relabeling and repacking and adopting any other treatment to render the product to the consumer as manufacture. This chapter note was subsequently renumbered as chapter note 4. It has been clarified by CBEC in their circular dt. 11.04.2016 (supra) that these activities amount to manufacture. Further, in the case of Indian Oil Corporation (Supra), Hon'ble Supreme Court has clarified that repacki....