TaxTMI 
TaxTMI 
2008 (9) TMI 344
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....n behalf of the appellants and Shri K. Sambi Reddi, the learned JDR, represented the Department. 3. We heard both sides. 4. The issue involved is the excisability of the product 'Polymer Modified Bitumen'. The appellants entered into an agreement with M/s. Afcons Infrastructure Limited. In terms of the Agreement, M/s. Afcons would supply bitumen and certain additives. The appellants would produce Polymer Modified Bitumen to enhance the quality of the bitumen, which is used in laying down the road or in the road construction. The point at issue is whether the process carried out by the appellants amounts to manufacture. Revenue proceeded against the appellants on the ground that the process carried out by them indeed amounted to manufa....
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....he retired Chief Chemist, Moreover, the Commissioner has also not accepted the decisions of the three other Commissioners who have held that the process does not amount to manufacture. 4.1 The learned Advocate pointed out that the appellants already paid the Service Tax in respect of this process under the category of a 'Business Auxiliary Services and, therefore, they are not liable to pay any Central Excise Duty, as the process does not amount to manufacture. In any case, they said that the longer period cannot be invoked because there is a difference of opinion, it is a question of interpretation and they were under the bona fide belief that they would not be liable to Central Excise Duty when the process carried out by them at the si....
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....o the Central Excise duty. The appellants have given elaborate details as to why the bitumen is modified by addition of polymer. They have also relied on a very large number of case-laws. The Supreme Court, in the case of Tungabadhra Industries Ltd. v. Commercial Tax Officer reported in AIR 1961 SC 412 has held that the molecular change caused to ground nut oil by hydrogenation did not result into that oil ceasing to be groundnut oil. In the case of CCE v. Jayant Oil Mills Pvt. Ltd. - 1993 (67) E.L.T. 986, the Tribunal has held that the process of lowering of castor oil did not debar from such its character and property that it is no longer vegetable oil. Further, the appellant have relied on the following case: (a) XI Telecom Ltd. v. Su....
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....L.T. 468 (T) = 2000 (39) RLT 796 (CEGAT) (v) S.T.P. Ltd. v. CCE - 2001 (134) E.L.T. 411 (T) (w) Amar Bitumen & Allied Products P. Ltd. v. CCE - 2005 (184) E.L.T. 37 (T) = 2005 (67) RLT 711 (CESTAT) (x) National Tar Products v. CCE - 2001 (135) E.L.T. 1388 (T) = 2000 (37) RLT 804 (CEGAT) (y) CCE v. Tikitar Inds. - 2006 (202) E.L.T. 215 (S.C.) (z) CCE v. Amar Bitumen & Allied Products Ltd. - 2006 (202) E.L.T. 213 (S.C.) 5.1 The argument of the Commissioner is that the Tariff classification of the Bitumen and Polymer Modified Bitumen are different. But, that is not important. What is important is whether the process carried out by the appellants amounts to manufacture and the opinion of the retired Chief Chemist cannot ....