Per Shri S.L. Peeran :

This is a revenue appeal against the order dated 18.02.1993 passed by the Commissioner (Appeals), Trichy. He has held that the re-processing of instant clotted coffee does not result in process of manufacture and hence the appellants were carrying out the process on the coffee which has come back in a damaged condition for re-processing and is not dutiable. He has noted the appellants submissions that the instant coffee is manufactured from duty paid coffee beans which are roasted and granulated and mixed with chicory roasts and then extracted and spray dried to form instant coffee. In the present case, in the damaged clotted instant coffee, the appellants carried out re-processing by emptying the damaged packets and dissolving them in not water and then spray drying the same and once again pack them in new packets. The Commissioner also held that the A.C. mis-directed himself with regard to the re-processing of clotted coffee as given by the assessee and that re-processing does not involve grinding of coffee seeds, roasting and granulating the coffee beans and mixing with chicory roasts. Therefore, he has concluded that re-processing of clotted coffee ap