GUJARAT DYETEX INDUSTRIES Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS appeal arose from the order No. 690/80 dated 27th May, 1980 passed by the Collector of Central Excise (Appeals), Bombay. M/s Gujarat Dyetex Industries, Ahmedabad manufacture organic surface active agents (synthetic detergents) falling under item 15AA -CET and claimed exemption under notification No. 101/66 -CE. Their goods fall under item 2 of this notification which reads :

(2.) THE manufacturers manufacture their detergents without power except in the pumping of raw materials in which they use power driven pumps. The Appellate Collector held that the exemption is related to non -use of power not only in the manufacturing process but in relation to the manufacture which has a wider connotation. He further held that pumping of raw materials by means of power would constitute manufacture with the aid of power. Thus a vital condition to be eligible for the exemption is not satisfied.

(3.) IN their appeal, Gujarat Dyetex Industries maintained that if in or in relation to the manufacture and packing of surface active agents, surface active preparations and washing preparations, any process is ordinarily carried on with the aid of power or of steam for heating, then the notification is not available. In other words it means that no power should be used in the manufacturing process and packing. They further say that the restriction of use of power only starts from the stage of processing and ends at the stage of packing. The condition does not restrict the use of power in stages prior to manufacturing or posterior to packing. They maintain that the process of manufacturing starts only in the reaction vessel and at this stage the process of reaction is done without the aid of power. Therefore, the vital condition of notification No. 101/66 is satisfied.