COMMISSIONER OF C. EX., AHMEDABAD Vs. FRESH LABORATORIES

JUDGEMENT

(1.) BOTH the appeals, one filed by Revenue and one filed by assessee, are being disposed, off by a common order as the issue involved is identical. Whereas one Commissioner (Appeals) vide his impugned order -in -appeal has held that process of dissolving synthetic organic dye in water does not amount to manufacture, the other Commissioner (Appeals) has held that such activity amounts to manufacture. As such, there are two different orders by the Commissioner (Appeals), holding differently in respect of same issue.

(2.) THE appellants are engaged in selling of Liquid Blue which is obtained by dissolving Iragon Bright Violet Powder, which is classifiable under Chapter 3204.29, in the tap water and bottling the same and selling as Liquid Blue. The appellants contention is that the said activity does not amount to manufacture, as held by the majority decision of the Tribunal in the case of Jyoti Laboratories v. Collector of C. Ex., Cochin [1994 (72) E.L.T. 669 (Tribunal)]. On the other hand, the Commissioner (Appeals) in one of his order, has relied upon another decision of the Tribunal in case of C.M.C. (India) v. Collector of C. Ex., Ahmedabad [1995 (76) E.L.T. 94 (Tribunal)], laying down that ultramarine blue is properly classifiable under Chapter Heading 3206.90 and not under 3212.90.

(3.) AFTER hearing both sides, we find that the issue is no more res integra and stand decided by the Tribunal in case of Jyoti Laboratories referred supra. It has been held that physical mixture of already standardised, formulated and prepared ingredients by dissolving the same in boiling water does not result in emergence of new product, inasmuch as no manufacturing activity is involved.