2025 (4) TMI 360

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....gh a pipeline from M/s Punjab Alkalies and Chemicals Pvt. Ltd., into cylinders amounts to manufacture and whether the appellants are required to pay applicable central excise duty on the same. Revenue issued a show cause notice dated 14.11.2011 alleging that the activity amounts to manufacture and that the appellants are liable to pay central excise duty of Rs.50,59,069/- along with interest and penalty during the period April 2006 to March 2011. Commissioner vide impugned order dated 08.05.2012 confirmed the duty demanded with equal interest and penalty and hence, this appeal. 3. Learned Counsel for the appellants submits that the issue is no longer res integra. Hon'ble Apex Court in the case of Surya Air Products in Civil Appeal No.235....

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....ent employed by the appellant is oil filtration, removing moisture by gas by drying by the in-built system of compressing pressure gas into the cylinders. The allegation of the Revenue is that this activity renders the product marketable to the consumer. As the gas received by the appellant through pipeline is not usable or consumable. Therefore, the gas received in pipeline is not marketable to the consumer in the state in which it is received by the appellant. On examining the activity undertaken by the appellant, the issue before us is that "whether the activity of the compressor, oil filtration and removing moisture in gas by drying renders the gas marketable to the consumer" and consequently in terms of Chapter Note 9 of Chapter 28 of ....

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....ylinders is a similar activity and same shall not amount to manufacturing process. 11. Now the only issue remain before us is whether the activity undertaken by the appellant renders the product marketable to the consumer or not. The said issue has been examined by this Tribunal in the case of Shivam Industries (supra) wherein this Tribunal has observed in paras 6 & 7 as under : "6. There is no dispute about the fact that the appellants purchased duty paid transformer oil in bulk and after filtration and heating used the same for filing the cavities of the transformers being repaired as liquid insulator. According to the department, this process would be covered by the definition of manufacture under Section 2(f)(ii) of Ce....