Collector Of Central Excise vs Coromandel Paints And Chemicals Ltd. on 9 July, 1985
In the cited case of [Collector of Central Excise v. Kalinga Paints & Chemicals Industries - 1989 (44) E.L.T. 548] aluminium medium and aluminium paste were put together in a common packet. The Tribunal held that in such condition the commodity which was manufactured only on admixure thereof could not be called to come into existence while the two ingredients were packed separately. In the present case as long as the three ingredients were carried separately they retained their separate identities of duty paid goods. Only when they would be mixed together in certain proportions, would they merge and emerge as a newly manufactured commodity. As long as this substances were stored and carried independently they retained their identities and could not fall under the ambit of the aforesaid Rule. The belief of the Commissioner that these three ingredients carried separately in the same van were prepared explosives incomplete or unprepared form has no substance and must be rejected.