1972 (12) TMI 38

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.... 1961, "dyes derived from coal tar and coal tar derivatives used in any dyeing process all sorts" were not subject to Central Excise. By the Finance Bill of 1961 the above articles were inserted in the 1st Schedule to the Central Excises and Salt Act as Item 14D. The Provisional Collection of Taxes Act, 1931 was made applicable to this levy of all dyes derived from coal tar and coal tar derivatives manufactured after the mid-night of 28th February, 1961 became liable to the new ad valorem Excise Duty of 15 per cent. 3. The dispute between the Central Excise Officers and the appellants related to a quantity of 47,068.50 kg. of dyes derived from coal tar and coal tar derivatives. This quantity consisted of 8 different items. The department....

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....factured product. It was also sought to be argued on behalf of the Central Excise authorities that the blending, which was admitted by the appellants, really resulted in the creating of a new product. It was also argued that the dye-stuff which was in the form of lumps before the pulverising and the blending was not a marketable commodity and that it was not a dye-stuff as understood by trade. On the other hand it was argued on behalf of the appellants that they had sold the dye-stuff in lumps also without pulverising and blending and that, therefore, the pulverising and blending which they carried out was not a process incidental or ancillary to the completion of the manufactured product. It was urged that by this definition what was inten....