TaxTMI 
TaxTMI 
2009 (2) TMI 22
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....ion 2(f) of the Central Excise Act, 1944 read with Note 11 to Chapter 29 of the Central Excise Tariff 1997-98 dealing with Organic Chemicals? 3. To answer the above question, we quote herein-below Section 2(f) of the said 1944 Act, which reads as follows: "(f) "manufacture" includes any process - (i) incidental or ancillary to the completion of a manufactured product; (ii) which is specified in relation to any goods in the section or Chapter notes of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) as amounting to manufacture; or (iii) which in relation to the goods specified in the Third Schedule, involves packing or repacking of such goods in a unit container or labelling or re-labelling of containers i....
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.... semi solid or solid ingredients of a mixture by means of mechanical agitation. After the bought out vitamins are mixed in the above mentioned manner, the item so obtained is called "intermixture of vitamins". According to the assessee, the item so obtained is stored by them in plastic drums/aluminium bottles in their factory. In order to identify the particular intermixture of vitamins, which are used in particular grade of the finished product, a sticker is also affixed on the drum/aluminium bottle containing the "intermixture of vitamins" giving details regarding the content of the drum/aluminium bottle. These intermixtures of vitamins are used in the manufacture of infant foods. According to the assessee, the said intermixtures of vitam....
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....ro mechanical device but both prior to the activity of mixing and even thereafter the bought out vitamins remain the vitamins. Assessee contended that individual Vitamin A, Vitamin D and Vitamin E etc. do not undergo any change whatsoever in their chemical or physical properties after mixing and that they retain their individual chemical and physical properties after being mixed with other vitamins and, consequently, it did not constitute 'manufacture', both conceptually as well as in terms of Section 2(f) of the said 1944 Act. 8. As regards the applicability of Note 11 to Chapter 29, assessee contended that the activity of labelling of containers or adoption of any other treatment to render the product marketable referred to in No....
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....2005, 3632/2005, 7608-7611/2005 and 909/2006 filed by the assessee. Incidentally, it may be mentioned that Civil Appeal arising out of S.L.P.(c) No.20726/2004 is filed by the Department against the decision of the Tribunal which has held that there was no suppression of material facts and, therefore, the Department was not entitled to invoke the extended period of limitation. 12. Having gone through the impugned judgment of the Tribunal, we find that the basic point which arises for determination in this batch of Civil Appeals filed by the assessee concerns "excisability". 13. At the outset, it may be stated that the decision of the Tribunal impugned by the assessee is cryptic. It does not deal with the points which are specific....
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....t out items. They were undoubtedly marketable. These vitamins were converted into a recipe which according to the assessee was not marketable and, therefore, Note 11 is not applicable. According to the assessee, no evidence has been led by the Department to show that the said recipe is marketable. On this aspect also there is no finding of the Tribunal. 16. One more aspect needs to be mentioned. In the context of above controversy, the Tribunal will also have to decide the meaning of the word "consumer" in Note 11. Since the above questions have not been decided by the Tribunal in proper perspective, we set aside the impugned judgment of the Tribunal and we remit the matter to the Tribunal for de novo disposal in accordance with law. ....