In Brief
The Supreme Court dismissed revenue's appeal challenging the Tribunal's order that exempted Vadilal Gases Ltd. from excise duty on gases. The company received liquefied nitrogen and argon in bulk tankers, then filled and labeled them in smaller retail cylinders, and also mixed inert gases in fixed proportions. The Court held that such activities do not constitute "manufacture" under the Central Excise Tariff Act. Merely transferring gases between containers is not "repacking," and mixing gases that retain their individual properties does not create a new marketable product. The Tribunal's decision was affirmed.
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