Blending of 5% ethanol with 95% motor spirit forming EBMS doesn’t amount to manufacture

Reliance Industries Ltd. Vs C.C.E. & S.T.-Rajkot (CESTAT Ahmedabad) Appellant blended 5% ethanol with 95% motor spirit to form EBMS – such blending doesn’t amount to manufacture – final duty payable on EBMS. Facts- The appellant is engaged in the manufacture of Motor spirit. The motor spirit is blended with Ethanol for the purpose of reducing Carbon Monoxide and consequent air pollution. The ethanol blended motor spirit (EBMS) was being cleared by the appellant to comply with requirement laid down by the Ministry of Petroleum and Natural Gas. The appellant paid the duty at the time o...