TaxTMI 
TaxTMI 
2008 (9) TMI 154
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....024 of 07, E/3470-71 of 06, E/3632-33 of 06, E/1399 of 07, E/988 of 07, E/458 of 07 and E/2864 of 07 filed by M/s. Hindustan Petroleum Corporation Ltd. (HPCL), M/s. Bharat Petroleum Corporation Ltd. (BPCL) and M/s. Indian Oil Corporation Ltd. (IOCL) against orders passed by CCE, Delhi-I and CCE, Rohtak. The last two appeals i.e. appeal No. E/458 of 07 and E/2864 of 07 had been listed today for waiver of pre-deposit, while the remaining appeals had been listed for regular hearing. Since the issue involved in all these appeals is identical, the same are heard together after waiving the requirement of pre-deposit of duty and penalty under Section 35F of the Act in respect of Appeal No. E/458 of 07 and E/2864 of 07. 2. The Appellants-M/s. HP....
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....n, Advocate, the learned Senior Counsel on behalf of the Appellants made the following submissions :- (i) Blending ordinary MS and HSD with small quantity-0.04% to 0.06% of multi-function additives (MFA) does not result in emergence any new product with distinct name, character and uses. The branded MS and HSD remain MS and HSD only. The MFA in the branded MS or HSD only improves the engine performance but does not change the basic character of the products. Hence, preparing branded MS or HSD from ordinary MS or HSD does not amount to manufacture. (ii) In Chapter 27, there is no chapter note to the effect that blending of MS/HSD with MFA will amount to manufacture. (iii) As per the Board's Circular No. 83/83/94-CX., dated 13-12-94,....
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....deposits and thereby improving the efficiency of the engine. Therefore the branded MS/HSD have name, character and use different from the unbranded MS/HSD. (ii) Tribunal in case of Collector of Customs, Madras v. Air Control System, reported in 1988 (33) E.L.T. 568, has held that blending of very small quantity of "Sodium Hexa metaphosphate" with Polytetra fluorethylene (PTFE), an antifriction substance, also known as Tephguard, which is essential for dispersion, amounts to manufacture. The ratio of this judgment is applicable to this group of cases. 4. We have carefully considered the submissions from both the sides. The Appellants bring duty paid MS and HSD to their Depots/Installations where a part of such MS/HSD is blended with MF....
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....he marketability of a product or improve the value addition does not amount to manufacture. In this case, the blending only improves the quality of the MS/HSD resulting in better value addition, without charging the basic characteristics and usages of the products. 4.2 The ratio of the Hon'ble Supreme Court's judgment in case of J.G. Glass v. UOI (supra) in which it was held that printing of glass bottles does not amount to manufacture is squarely applicable to the facts of this case. 4.3 Hon'ble Supreme Court in a series of judgment - South Bihar Sugar Mill v. UOI reported in 1978 (2) E.L.T. J336 (S.C.) and Union of India v. Delhi Cloth Mills Ltd. reported in 1977 (1) E.L.T. J199 (S.C.) and Tega India Ltd. v. CCE reported in 2004 (16....