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5. On 18th February, 1998, a show cause notice was issued to the appellant alleging therein that the activities carried on by the appellant amounted to manufacture and the products being filtered and repacked were classifiable under entry 3402.90. The larger period of limitation was also invoked under the proviso to Section 11A on the ground that the appellant was guilty of fraud, concealment, etc. with a view to evade the payment of excise duty.

6. Assessee filed detailed reply to the show cause notice explaining that the activities carried on by the appellant did not amount to manufacture and that the classification proposed by the department was incorrect. Various other contentions on limitations as well as on merits were raised. According to the appellant, during the said period, the appellant worked as a job worker undertaking filtering, repacking and labeling the materials supplied to it and the same would not amount to manufacture.

8. Chapter note 6 of Chapter 34 which reads as follows:

6. In relation to products of sub-heading No.3402.90, packing or repacking into smaller packs, including packing or repacking of bulk packs to retail packs or adoption of any other treatment to render the product marketable to the consumer shall amount to manufacture. was relied upon to hold that the activity of repacking, re-labeling amounted to manufacture. Chapter note 6 was introduced to Chapter 34 with effect from 1st March, 1994.

recorders).

(b) Liquid Paraffin falling under SH 2710.90

-do-

SCO- 845  Switch cleaning oil  cleans and lubricates switch controls

(c) Isopropyl Alcohol falling under SH 2905.90

-do-

DCF 847  de-greasing and cleaning fluid (specially packed for servicing audio/video industry).

23. It is not in dispute that the raw materials out of which the impugned goods have been manufactured by way of filtering, repacking, etc. were classifiable under a separate heading prior to the activities undertaken by the appellant.

26. The basic property of mixture is cleansing as is evident from the statement of the partner of M/s. Thinner & Company.

27. Extracts of H.S.N. under Chapter 34 sub heading No. 3402.90 provides: -

Cleaning preparation whether or not containing soap, other than those heading 34.01 and cleaning preparation serve for cleaning floors, windows, or other surface.

28. The clause of manufacture with reference to repacking from bulk packs to retail packs introduced by the Finance Act from 1994 clearly points to the fact that even if the bulk material is identifiable excisable goods, the fact of repacking from bulk to retail pack would render the product separately classifiable. Admittedly, the product manufactured by the appellant is used as cleanser. It no longer remained the product which was supplied to the appellant. It was known in the market by a different name and for a different use. The same would not fall either under Chapter 27, 29 or 38. The same would fall under sub-heading No. 34.02 as a cleansing product.