TaxTMI 
TaxTMI 
2019 (5) TMI 935
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....y stated the facts of the case are that the appellants purchased duty paid 'Styrene Butadiene Latex' falling under Chapter heading 40.02 of the Central Excise Tariff Act, 1985 from two suppliers namely, M/s BASF Ltd. having product name "STYROFAN D 623" and M/s Apcotex Industries Ltd. having product name as "APCOTEX TSN 100". The said raw materials are placed in MS Vessels, diluted with water and after stirring either manually or using electrical power for around 15-20 minutes the resultant material is packed in different packages and sold by the appellant affixing brand names i.e. "SIKA LATEX" (for large consumer) and "SIKA LATEX POWER" (for small consumer). Alleging that the process of diluting the raw material namely, "STYROFAN D 623" an....
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....amely, 'Styrofan ID 604 AP' describes the product as "Modified Styrene Butadiene copolymer aqueous dispersion". In other words, the starting material 'Styrofan ID 604 AP' is a watery substance wherein the solid i.e. synthetic rubber is throughout finely distributed. The product sheet of the resultant materials namely, 'Sika Latex' and 'Sika Latex Power' describes them as 'Synthetic Rubber Emulsion". Thus, there is no change in the name of the product as the product continues to be synthetic rubber. Further, the expression 'Sika Latex' and "Sika Latex Power' are their brand name and affixing these brand name does not change the name of the basic chemicals based on which the goods were bought and sold. He has contended that the change in name....
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....re as held by Hon'ble Supreme Court in case of Commissioner of Central Excise Vs. Osnar Chemical Pvt. Ltd. - 2012 (276) ELT 162 (SC). Further, he has submitted that there is no change in the use of the raw material "STYROFAN D 623" and "APCOTEX TSN 100" and that of the end product namely, 'Sika Latex' and 'Sika Latex Power' which are used as admixture in cement, mortars, concrete, grout to provide good adhesion and water resistance. Thus, it is their contention that the starting materials as well as the end products are based on Styrene Butadiene Rubber, which has the property of good abrasion and good aging stability. Also, it is used as adhesive. Thus, since there is no change in the character and use of the starting materials after dilut....
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....ted into 'manufacture' of 'Sika Latex' and 'Sika Latex Power' within the definition of manufacture under Section 2(f) of the Central Excise Act, 1944 and chargeable to duty. In confirming the process of mixing the said materials with water carried out by the appellant as 'manufacture', the learned Commissioner (Appeals) has reasoned that the product information submitted by M/s BASF Ltd., who supplied the materials "STYROFAN D 623 AP" reveals that the manufacturer should carry out their own trials in developing product based on "STYROFAN D 623 AP" because experiment on their part could not materialize due to various factors which might exert an influence during production/processing. The mutual compatibility of the components of the formula....
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....319) ELT 578 (SC). Their Lordships observed as under: - "27. The case law discussed above falls into four neat categories. (1) Where the goods remain exactly the same even after a particular process, there is obviously no manufacture involved. Processes which remove foreign matter from goods complete in themselves and/or processes which clean goods that are complete in themselves fall within this category. (2) Where the goods remain essentially the same after the particular process, again there can be no manufacture. This is for the reason that the original article continues as such despite the said process and the changes brought about by the said process. (3) Where the goods are transformed into somethi....
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....ps in para 23 observed as follows: - "23. Having considered the matter on the touchstone of the aforesaid legal position, we are of the view that the process of mixing polymers and additives with bitumen does not amount to manufacture. Both the lower authorities have found as a fact that the said process merely resulted in the improvement of quality of bitumen. Bitumen remained bitumen. There was no change in the characteristics or identity of bitumen and only its grade or quality was improved. The said process did not result in transformation of bitumen into a new product having a different identity, characteristic and use. The end use also remained the same, namely for mixing of aggregates for constructing the roads." 9. In vi....