BUND AND CONES PVT. LTD. Vs. CCE

JUDGEMENT

(1.) THE common issue involved in these 4 appeals arising out of 2 Ordert -in -Appeal is whether M/s. Buns 8s Cones Pvt. Ltd. and Sunny Deserts Pvt. Ltd. are engaged in the manufacturing of Ice -cream falling under Heading 21.05 of the Schedule to the Central Excise Tariff Act.

(2.) SHRI B.L. Narasimhan, learned Advocate, mentioned that M/s. Buns and Cones Pvt. Ltd. are engaged in the business of selling ice -cream of the brand "Baskin Robbins" purchased from M/s. Maharashtra Dairy Products manufacturing Co. Ltd., Pune; that from 1.4.1999 the second Appellants M/s. Sunny Deserts Pvt. Ltd. have taken over the operation from Buns 8s Cones; that the ice -cream manufactured by M/s. Maharashtra Dairy Products Manufacturing Co. are packed in 4 litres capacity cardboard cartons; that the Appellants sold these ice -cream to their customers in cups in the required quantity and also sold Sundae, Shakes and Blasts made out of these ice -creams and blending it in a mixture; that show cause notices were issued to the Appellants for demanding Central Excise duty on the ground that the process undertaken by them amounts to manufacture in terms of Note 7 to Chapter 21; that in the case of Buns &s Cons the Additional Commissioner under Order -in -Original No. 51/2000 dated 3.5.2000 has held that scooping and selling of ice -cream in cups from bulk packing does not amount to labeling or re -labeling to bring it under Note 7 to Chapter 21 and accordingly he dropped the demand in respect of Sundae, Shakes and Blasts holding that the activity of making these products is squarely covered under the definition of manufacture within the meaning of Note 7; that the appeal filed by them was also rejected by the Commissioner (Appeals) vide Order -in -Original No. 49/2002 in the case of Sunny Deserts Pvt. Ltd. These appeal have been rejected by the Commissioner (Appeals) vide Order -in -Appeal No. 329 -330/2003 dated 29.12.2003.

(3.) THE learned Advocate submitted that Note 7 to Chapter 21 reads as under: In relation to products of this Chapter, labeling or re -labeling of containers and re -packing from bulk packs to retail packs or the adoption of any other treatment to render the product marketable to the consumer shall amount to manufacture.