C.C.E. vs Bharat Plywood And Timber Products (P) ... on 24 November, 1997
In the case of CCE v. Maize Products Ltd. the duty had been paid on Anhydrous Dextrose Powder. The same has been returned for re-processing. The assessee has carried out seiving and removal of moisture and the same was cleared without payment of duty. The Tribunal after looking into several aspects held that such process does not amount to existence of new product or commodity and is only re-processing of duty paid goods. The appeal of the revenue was rejected. Even in the case of Shri Krishna Gyanoday Sugar Ltd. cited supra, the Hon'ble High Court has held that re-processing of defective sugar does not bring into existence of new sugar and the question of paying duty on re-processing is not sustainable. We notice in the present case that the appellants are merely wetting out the returned granulates and dried them again and there is no additional inputs to refresh the instant coffee. In these circumstances, we cannot hold there is a new process resulting in fresh instant coffee.