COMMISSIONER OF CENTRAL EXCISE Vs. AMRITLAL CHEMAUX LTD.

JUDGEMENT

(1.) There are three products involved in the present appeal and the question is as to whether the process undertaken by the Respondent-Assessee in these products amounted to manufacture or not. The products are various dyes & dye bases, napthols & fast bases, and chrome pigments. They fall in Chapter 29 and Chapter 32 of the Central Excise Tariff Act, 1985 (hereinafter referred to as 'Act') respectively. It is not in dispute that the Assessee is not the manufacturer of these products. It buys the same from a manufacturer in bulk quantities in bulk packing. Thereafter, some process is undertaken thereupon, as noted hereinafter and that has given rise to the dispute as to whether such a process amounts to manufacture or not. The process is of repacking and/or labelling. It is thus, an admitted case that the Assessee is not a manufacturer in traditional sense. However, by virtue of Chapter Note 11 of Chapter 29 and Chapter Note 3 of Chapter 32 of the Act, which gives extended meaning to 'manufacture' by creating a fiction, the Appellant wants to rope in the Respondent-Assessee under the aforesaid Chapter Notes. The two chapter notes, viz., Chapter Note 11 of Chapter 29 and Chapter Note 3 of Chapter 32 are identically worded and read as under:

(2.) Applying the aforesaid principle to the facts of this case, in the first instance, we find that though the show cause notice covered all the three products, viz., dyes & dye bases, napthols & fast bases, as well as chrome pigments, the final order which was passed by the adjudicating authority, did not levy any excise duty on dyes and dye bases. Thus, we are concerned with the remaining two products, viz., napthols & fast bases and chrome pigments.

(3.) Insofar as the napthols & fast bases is concerned, even from the order of the Commissioner, it becomes clear that though there was repacking and even relabelling , the repacking of bulk was not into retail packing as the goods after repacking were supplied to industrial consumers on wholesale basis. It is specifically stated so by the Assessee which fact is not denied by the Commissioner. Therefore, both the conditions mentioned in the Chapter Notes are not satisfied.