Process of mixing of thermol and mixed oil doesn’t amount to manufacture

Shah Petroleums Vs C.C.E. & S.T.-Surat-II (CESTAT Ahmedabad)

CESTAT Ahmedabad held that mixing of thermol and the input namely Mixed oil does not alter the nature of the product accordingly the same doesn’t amount to manufacture.

Facts- The issue involved here is whether super mix oil (first final product) is classifiable under CET 27101990 as claimed by the appellant or under CET 27101190 as claimed by the department and Super C-9 Plus (second final product) is classifiable under CET 27079900 as claimed by the appellant or under CET 27101190 as claimed by the department.

Conclusion- We find that the appellant have raised the very vital issue that it is an admitted fact by the department that by mixing of thermol and the input namely Mixed oil does not alter the nature of the product. If this be so, then how the activity amounts to manufacture however, the adjudicating authority without considering this vital issue jumped to the conclusion about the classification of the resultant goods. The classification will come into picture only once it is established that there is manufacturing however, in the present case the department itself is of contention that by entire process of mixing of thermol and mixed oil and any other product and thermol and C-9 Plus, there is no change in the nature of the product therefore, this aspect needs to be considered elaborately by the adjudicating authority. It is also not clear that the department has applied the classification of 27101190 on the basis that the input falls under the same CTH and due to no change in the nature of the product, the classification will remain same.

FULL TEXT OF THE CESTAT AHMEDABAD ORDER

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