COMMR.OF CEN.EXIC.II BANGALORE vs M/S OSNAR CHEMICAL P.LTD.

The Supreme Court ruled that the mechanical mixing of polymer with heated bitumen does not constitute the manufacture of a new commercially identifiable product under the Central Excise Act, 1944. The Court held that the process carried out by the assessee at the work site does not attract excise duty as it does not result in a product that is distinct from the original materials. Consequently, the appeals by the revenue were dismissed, affirming the Tribunal's decision that the assessee is not liable for excise duty on the Polymer Modified Bitumen produced at the site.