TaxTMI 
TaxTMI 
2019 (8) TMI 1173
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....al Units, etc. They subject it to various processes such as vacuum distillation, centrifuging, filtration and also add some chemicals and additives and make the oil reusable and sell it in unit containers bearing their own brand name 'JEEZOL' and clear it as re-refined market oil. They also do some processes in respect of lubricants and sell them. Although these are merely processes and may not amount to manufacture, a legal fiction has been created by Chapter Note 4 to Chapter 27 of Central Excise Tariff Act, 1985 which reads as follows: "In relation to lubricating oils and lubricating preparations of heading 2710, labeling or re-labeling of containers or repacking from bulk packs to retail packs or the adoption of any other treat....
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....Order was passed without taking into consideration Chapter Note 4 to Chapter 27 of the Central Excise Tariff by which a specific legal fiction has been created holding that in case of lubricating oils and lubricating preparations falling under Chapter Heading 2710, labeling or relabeling of containers and repacking from bulk pack to retail packs or adaptation of any other treatment to render the product marketable to the consumer shall amount to manufacture. The Hon'ble High Court has allowed the Department's appeal and remanded the matter back to the Tribunal to examine the aforesaid note and consider the issue afresh and pass an order looking at the statutory provisions. Hence, these appeals before us. 3. Learned counsel for the appell....
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.... in which this Chapter Note was examined in detail. It has been held that labeling or relabeling of containers or repacking from bulk pack to retail pack of lubricants does amount to manufacture. Further, any other process or treatment to render the product marketable amounts to manufacture even if it is made to render it marketable to the consumers. If other processes are undertaken which make the product marketable to bulk users/industrial users, it does not amount to manufacture. He also relies on the CBEC Circular No.1024/12/2016-CX dated 11.4.2016 in which it has been clarified that this Chapter Note applies only to lubricating oils and lubricating preparations of Heading 2710. He would show us sample copies of their ER-1 returns to de....
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....arguments of both sides and perused the records. The issues which fall for consideration in these cases are as follows: (a) Whether the appellant has manufactured only lubricants falling under Chapter Heading 2710 or they have manufactured other products falling under this heading also. (b) In respect of lubricants which are manufactured by the appellant, whether they have affixed their label 'JEEZOL' on their containers / barrels / packing. (c) Whether the appellant has sold these goods to only bulk and industrial consumers and consequently, whether any process has been undertaken by the appellant to render the product marketable to consumers. (d) Whether any products other than lubricants which were man....
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....foresaid factual verification. (i) As far as the goods falling under Chapter 2710 which are not lubricants / lubricating oils are concerned, as clarified by CBEC in its Circular No.1024/12/2016-CX dated 11.4.2016, this Chapter Note 4 does not apply. If any products are manufactured and cleared by the appellant which are not lubricating oils or lubricating preparations, they are not covered by this Chapter Note and no duty is liable to be paid on such clearances even if labeling/ relabeling / repacking / any other treatment rendering the product marketable to consumer is undertaken. (ii) As far as the lubricants / lubricating oils are concerned, if these goods have been cleared after labeling or relabeling, the same amounts....