2022 (5) TMI 566

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..../733/2008 and E/2561/2007, dated 15.5.2017, whereby the impugned order passed by learned Commissioner (Appeals) was upheld and the appeal filed by the appellant was dismissed. 2. Brief facts necessary for adjudication of the appeal are that appellants are engaged in the manufacture of thinner, falling under Chapter Heading 3814.00 of the Central Excise Tariff Act, 1985 registered under Companies Act, 2013. Appellants, apart from manufacturing thinner, are also engaged in the activity of blending of various mineral oils and selling the same to various industrial consumers or persons engaged in the construction of roads and it is clear that various oils, like furnace oil, mineral turpentine oils are filled in the blending vessel from the u....

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..... 6. We have heard M/s. Alok Yadav & Goverdhan Lal Sharma, learned counsel for the appellant and Mr. Vijay Kumar Arora, learned Senior Standing Counsel for the respondent and also gone through the records of the case. 7. Mr. Alok Yadav, learned counsel for the appellant has argued that no manufacturing process is involved and the product is just blend of two oils, which are already taxed by the respondent and the process carried out by the applicant is simple blending and the same cannot be said to be manufacturing of a product and so the order passed by respondent is required to be set aside by allowing the instant appeal. He has further argued that the order passed by learned CESTAT is perverse and arbitrary and the same has been pa....

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....ernational decided on 4.8.2010. He has also placed reliance on the decision rendered by CESTAT in case titled as I.O.C. Ltd. Vs. Commissioner of Central Excise, Patna, decided on 24.1.2019. 10. In Servo-Med Industries Pvt. Ltd. Vs. Commissioner of C. Ex., Mumbai, Hon'ble the Supreme Court has held as under: "xx xx xx 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 ....

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....product is reduced. This Court while taking into consideration the manufacturing process, comes to the conclusion that there are three ingredients, which are (a) two oils as raw-material are used; (b) blending is there with the electric motor and (c) process is carried out for reducing the viscosity of the final product. The final product is sold in a different name. 13. Applying the above law, as held by the Hon'ble Supreme Court to the facts of the present case, it is clear that (1) two oils are used for the manufacturing the produce (2) Oils are mixed with the electric motor (3) by mixing the oils the viscosity is reduced (4) the final product is used as industrial oil (5) the final product is sold with a different name and brand, so ....