TaxTMI 
TaxTMI 
2022 (12) TMI 902
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....Excise Tariff Act, 1985 as amount into manufacture.' in section 2(f)(ii) of Central Excise Act, 1944 which, along with 'In relation to products of this Chapter, labelling or relabelling of containers and repacking from bulk packs to retail packs or the adoption of any other treatment to render the product marketable to the consume, shall amount to manufacture' in note 9 to chapter 28 of Schedule to Central Excise Tariff Act 1985, was invoked to allege non-compliance with the liabilities attracted by, and obligations appendant to, section 3 of Central Excise Act, 1944. The two entities involved in the impugned transactions are M/s Mody Chemi Pharma Pvt Ltd, registered manufacturer under Central Excise Act, 1944, and M/s Mody Chemical Industries, a proprietorship concern registered as dealer under Central Excise Act, 1944 with the individual-appellant, Mr Bhavesh Mody as Hindu Undivided Family (HUF), owning the latter and designated director in the former. 3. Levy of duties from deeming as manufacture, through insertion of note in chapter 28, 29, 34, 35 and 38 of the Schedule to Central Excise Tariff Act, 1985, by Finance Act, 1997 ushered in the impugned legal fiction that is t....
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....lminated in order-in-original no. Belapur/38/Taloja/R-IV/SLM/ Commr/11-12 dated 31st October 2011 of Commissioner of Central Excise, Belapur confirming the said liability under section 11A of Central Excise Act, 1944, along with interest thereon under section 11AB of Central Excise Act, 1944, besides imposing penalty of Rs. 53,45,417 under section 11AC of Central Excise Act, 1944 and determination of fine of Rs. 15,00,000 under section 34 of Central Excise Act, 1944 on the goods that, but for lack of availability, would have been confiscated. 5. During investigations into alleged clandestine removal by the manufacturer, repacked 'liquid bromine' valued at Rs. 19,98,200 were seized on 31st October 2008 for not having been accounted and show cause notice dated 28th April 2009 issued by the jurisdictional Deputy Commissioner of Central Excise proposing confiscation under rule 25 of Central Excise Rules, 2002 with attendant penalties under rule 26 and rule 27 of Central Excise Rules, 2002 was adjudicated. The upholding of confiscation with option to redeem on payment of fine of Rs. 3,00,000 and imposition of penalty of Rs. 2,88,140 in order-in-appeal no. BC/37-39/MUM-III/2012-13 dated....
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....ntative submits that the re-packing of imported 'liquid bromine' as 'six pack' of bottles of 3kg capacity and labelled for sale to ultimate users passes through a stage that was not contemplated in the circulars of Central Board of Excise & Customs (CBEC) cited on behalf of appellant. He further submits that it has not been controverted that the manufacturing entity carried out bottling which, in the past, had been undertaken on payment of applicable duties. It was also pointed out that individual-appellant herein had, in a statement, admitted to the non-accountal of stock found in the premises at the time of search. 10. Learned Authorised Representative relied upon the decision of the Hon'ble Supreme Court in Commissioner Central Excise, Meerut - II v. Sundstrand Forms P Ltd [2011 (271) ELT 326 (SC)], in Air Liquide North India Pvt Ltd v. Commissioner of Central Excise, Jaipur - I [2011 (271) ELT 321 (SC)] and of the Tribunal in Mittal Pigments Pvt Ltd v. Commissioner of Central Excise, Jaipur-I [2013 (30) STR 193 (Tri.-Del.)] as well as in Nestle India Ltd v. Commissioner of Central Excise, Chandigarh - II [2011 (270 ELT 575 (Tri.Del.)]. Further reliance was placed in the decisi....
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....ketability and value addition as determinants of manufacture mirrored that 'zig zag' approach to applicability of the wherewithal for deeming an activity as dutiable. 13. It has been alleged by the jurisdictional tax authorities that the containment of 'liquid bromine' for convenient transportation and storage from the bulk supply in ISO containers lined with glass by the manufacturing entity for the trading concern is deemed manufacture in terms of note 9 to chapter 28 of Schedule to Central Excise Tariff Act, 1985. The goods received in quantities that is far in excess of reasonable requirement for industrial deployment passes through a process for driving it out of the ISO containers and into 3 kg bottles forced through a 50 kg flask. It is akin to a step-down transformer that brings high tension electrical energy to the homes of consumers. Being a hazardous substance, there is legal requirement of affixing labels detailing source and handling instruction. There is, thus, packing and labelling and it was to be determined if these conform to the prescriptive threshold envisaged by the impugned note that is composed of four process with each of them standing on their own for manu....