P.K. Kapoor, Member (T)

1. This is an appeal against the order passed by the Collector (Appeals), Central Excise, New Delhi. The only question that arises for consideration in this case is whether the preparation of Malathion 50%, DDT 25%, Aldrin 30% and Sohnagar 30% E.C. by mainly dilution of basic pesticidal chemicals in highly concentrated form by addition of inert carriers/solvents and dispersing and stabilising agents to make them suitable for either direct use or after addition of water, amounts to manufacture within the meaning of Section 2(f) of the Central Excises and Salts Act, 1944.

2. On behalf of the appellant Shri Somesh Arora, learned JDR appeared before us. He contended that the process of addition of chemicals and other ingredients like inert carriers or solvents and also surface active, dispersing and stabilising agents to pesticidal chemicals in highly concentrated form would amount to manufacture within the meaning of Section 2(f) of the Act since it results in the emergence of a new and distinct product having different properties viz. pesticide/insecticide fit for either direct use or after addition of water. According to the learned JDR the process of conv