TaxTMI 
TaxTMI 
1996 (5) TMI 91
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....-3 to the petition, issued under Section 37B of the Central Excise and Salt Act, 1944 by the Central Board of Excise and Customs. The learned Counsel have contended that common questions arise in all the cases, though in some cases the Circular has been impugned and in other cases the issuance of show cause as well as the consequent orders have been challenged. The petitions are, therefore, disposed of by this judgment. 2.The facts of Writ Petition No. 3903/95 (M/s. Kissan Chemicals v. Union of India and Others) may be noticed. 3.The petitioner is a Unit of M/s. Montari Industries Ltd. having its works at 41, Industrial Area, Phase-II, Chandigarh and is engaged in the formulation of pesticides. The petitioners submit that the process empl....
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....ommodity to the point where commercially it is recognised as a new and distinct article that a manufacture can be said to have been taken place. Paragraph 7 of the judgment of the Tribunal reads as follows :- "It is seen that the processing of the concentrated basic pesticidal chemicals in question carried out by the respondents through addition of inert carriers/solvents and dispersing and stabilising agents resulted only in their dilution rendering them suitable for use either directly or after addition of water and formulations retained the name of the basic chemicals. Evidently no new product having distinctive name, character and use appeared as a result of such processing. Under these circumstances on the ratio of the decisions quote....
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.... with the reasons may be reproduced as follows :- "2. The Hon'ble Tribunal, while stating the accepted principle that for `manufacture' to take place a new product having a distinctive name, character and use must emerge, have held that addition of inert carriers/solvents and dispersing and stabilising agents resulted only in their dilution rendering them suitable for use either directly or after addition of water and formulations retained the name of the basic chemicals, evidently no new product having distinctive name, character and use appeared as a result of such processing. 3. The matter has been carefully considered by the Central Board of Excise and Customs (hereinafter referred to as the `Board'). The above-mentioned judgment of t....
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....unal. The Counsel have further referred me to the Division Bench judgment of the Bombay High Court in Special Civil Application Nos. 9034, 8580, 8730, 9035 and 9036 of 1995 decided on 15th April, 1996 where similar challenge to the same circular was made. The learned Judges after reproducing the provisions of Section 37B of the Act came to the following conclusion : "This Section empowers the Board to issue circular for the purpose of uniformity in the classification of excisable goods or with respect to levy of duties of excise on such goods. Certainly, this Section does not authorise the Board to issue directions which is contrary to the decision rendered by the Tribunal. Mr. Ajmera, learned Advocate could not point out anything which w....