CCE, COIMBATORE Vs. KAYES AGRO INDUSTRIES

JUDGEMENT

(1.) The Revenue is aggrieved with the Order -in -Appeal No. 39, 40 and 41/97 (CBE) dated 10.2.97. Revenue was required to have filed two more appeals. This appeal is restricted to the Order -in -Original dated 13.6.95. As the Order -in -Original is single one, therefore the 3 appeals field was in terms of then practice of the Tribunal to file as many appeals as per the number of show cause notices. Now the practice has been changed to file the number of appeals as per the Orders -in -Original. As there is only one Order -in -Original, this appeal is taken up to be properly filed.

(2.) The department initiated proceedings against the respondents for levy of duty on the process of conversion of technical material into formulation on the ground that it amounts to manufacture and a new commercial commodity with separate identity comes into existence. The assessee had taken a view that dilution of the concentrated basic pesticidal chemicals did not bring into existence a process of manufacture in terms of Section 2(f) of the Central Excise Act and they were not classifiable under Chapter Sub Heading 3808.10. The Commissioner noting the Tribunal judgment rendered in the case of Markfed Agro Chemicals [1993 (68) ELT 848 (T) as well as the Trade Notice NO. 10/95 dated 8.2.95 issued by Ahmedabad Collector upheld the assessee's contention in para 4 to 7 which is reproduced herein below: -

(3.) Ld. SDR submits that the Budget of 1996 has brought a change in the Section Note with a clarification that this process is to be treated as a process of manufacture and it should be considered as a clarificatory in nature having retrospective effect and hence the order requires to be set aside and the demands raised in the show cause be confirmed as held by the Order -in -Original.