JUDGMENT

B.P. JEEVAN REDDY, J.

(1) IN this appeal preferred by the Collector, central Excise, Bombay under Section 35-E of the central Excises and Salt Act, 1944 (hereinafter referred to as "the. Act"), the question is whether the distillation and re-crystallization carried out by the respondent amounts to manufacture? The respondents, M/s S.D. Fine Chemicals Pvt. Ltd., are engaged in the manufacturing of laboratory chemicals and fine chemicals. They also underlake repacking and purification of laboratory and fine chemicals. In the classification list filed by them on 1/4/1983, they claimed that the process of purification and distillation undertaken by them does not amount to process of manufacture and accordingly, claimed exemption from duty in respect of such goods under Notification No. 77 of 1983 dated 1/3/1983. The Assistant Collector agreed with the respondents but his order was revised by the Collector (Appeals) who held that the processes undertaken by the respondents do amount to manufacture. Inasmuch as a new commodity known to the market emerges as a result of such processes, he held, they are liable to excise duty. The respondents filed an appeal b