2008 (6) TMI 63

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....he learned SDR, for the Revenue. 3. Heard both sides. 4. The appellants were engaged in the activity of cleaning, purifying, blending and packing of duty paid Glucovita Glucose-D received from M/s. Corn Products Company (India) Ltd., Bombay, from bulk packs to retail packs, on job work basis. The issue involved is whether the processes undertaken by the appellants amounts to manufacture? This issue was decided by the lower authority in favour of the Revenue. The appellants agitated the issue and finally the matter was remanded to the Original Authority who passed the impugned order in the de novo proceedings. The period of dispute is from 1-3-1986 to 25-12-1989 and 1-5-1990 to 11-5-1990. The Show Cause Notice has been issued on 7-11-1....

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....adoption of any other treatment to render the product marketable to the consumer shall amount to 'manufacture'. In the absence of any such Chapter Note., the processes undertaken cannot be treated as manufacture under Section 2(f) of the Central Excise Act as it existed then. He urged the point that the burden to prove that a process would amount to manufacture is on the Department. in this regard, he relied on the following Apex Court's decision : (i) CCE, Chandigarh v. Steel Strips Ltd. - 2003 (154) E.L.T, 336 (S.C.) (ii) Metlex (I) Pvt. Ltd. v. CCE, New Delhi - 2004 (165) E.L.T. 129 (S.C.) 5.2 The appellants sent samples of the input as well as the output to Shriram Institute for Industrial Research, Bangalore. The input contain....

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.... 5.5 The Show Cause Notice dated 7-11-1990 was issued after the issue of CBEC Circular No. 7/90-CX-1, dated 7-3-1990 stating that the duty paid Dextrose Monohydrate cleared in bulk under CSH 1702.19 when subjected to mixing with 0.6% of Calcium Phosphate and Vitamin D in a blending machine and re-packed in polythene pouches ranging from 100 gms to 500 gms and packed in printed cartoons would fall under classification of CSH 1702.21. In fact, the appellants were guided by the Circular No. B. 29/1/70-CX-II, dated 4-6-1970 issued by the CBEC according to which repacking of duty paid bulk Glucose and Dextrose into retail packs does not attract any further duty liability, even if some other ingredients are added before repacking. Hence, the appe....