Mahatha Petro Chemicals vs Collector Of C. Ex. on 8 September, 1989
16. The next question is with regard to Mahatal RT 75. The assessee claims this to be dutiable furnace oil and that there is no-manufacturing as no new product emerges despite distillation by use of electric blower and manually pine oil and resin is added to it. The same is packed as Mahatal RT 75. Merely by giving a new or similar product a different name, the nature of the product does not change. They have relied upon the citation in 1988 (34) E.L.T. 16 Delhi High Court in the case of National India Rubber Works Ltd. v. Union of India and Ors. and several citations on manufacture. They have heavily relied upon the Test Certificate to show that the product is a duty paid furnace oil and has continued to remain so despite the distillation, addition of pine oil and resin and being packed and named as Mahatal RT 75. They claimed exemption and submitted that similar product of Indian Oil Corporation has not been levied with any duty. The Collector has not accepted the Test Certificate on the ground that the Test Certificate satisfies only one condition. But what is significant is that the test of sample has not been done by the Department. The Test Certificate also does not disclose as to what the ultimate material is, after the analysis of the product. On mere results, an inference cannot be drawn by us. The appellants seek to draw the conclusion by the test results that it satisfies the conditions of furnace oil. Such conclusions cannot be drawn by us without proper sample being drawn by Department and a finding obtained as to whether the product is still a furnace oil or not. Hence, on this question we have to remand the matter to the Collector with a direction to draw the representative sample and get it tested and indicate in the Test report with clarity as to what the product is. Only afterwards, the Collector has to de novo decide about this product by giving a finding of its being manufactured or not and as to the entitlement of exemption sought for by the appellants.