CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL BANGALORE REGIONAL BENCH - COURT NO. 1 Central Excise Appeal No. 20334 of 2017 [Arising out of Order-in-Original No. BLR-EXCUS-001-PRCOM-MVK-30 & 31-

16-17 dated 26.12.2016 passed by the Principal Commissioner of Central Excise, Bangalore - I]

M/s. Wilber Chemicals Plot No. 111, Sy. No. 27 & 32, Bandenallasandra Industrial Layout, Bommasandra, Jigani Link Road, Anekal Taluk Bangalore – 560 105 ……........Appellant(s)

VERSUS The Principal Commissioner of Central Excise, Bangalore - I Post Box No. 5400, C.R. Buildings Bangalore – 560 001 ..............Respondent(s)

APPEARANCE:

Mr. Akbar Basha, Chartered Accountant for the Appellant Mr. Rajashekar B.N.N., Superintendent (AR) for the Respondent CORAM:

Hon'ble Mr. P.A. Augustian, Member (Judicial)

Hon'ble Mr. Pullela Nageswara Rao, Member (Technical)

FINAL ORDER NO. 20600 / 2026 Date of Hearing: 29.10.2025 Date of Decision: 28.04.2026 PER: P.A. AUGUSTIAN The issue in the present appeal is whether the activity undertaken by the Appellant during the period from 20.02.2012 to 11.08.2015 amounts to manufacture and whether demand can be confirmed by invoking the extended period of limitation.

2. The brief facts are alleging that the Appellant is manufacturing 'Epoxy Resin' classifiable under Chapter Heading 3907 of the Central Excise Act, 1985 and sold the same without payment of duty, show cause notice dated 02.02.2016 was issued demanding excise duty along with interest and also proposing penalty. Thereafter another show cause notice was issued on 01.09.2016 for the period from August 2015 to July 2016. Adjudication Authority as per the impugned order confirmed the demand against both the show cause notices and also demanded interest. Further against the first show cause notice, penalty of an equal amount was also imposed. Aggrieved by said order, present appeal is filed.

3. When the appeal came up for hearing, the Learned Chartered Accountant (CA) for the Appellant submits that the Appellant is involved in trading of chemicals for granites, fiber glass meshes, resin bond abrasives, epoxy resins, hardeners, colours and other chemicals. In respect of trading of epoxy resins, hardeners, colours and other chemicals, it is purchased in barrels and the same are sold in smaller containers ranging from 1 kg to 5 Kgs as per the requirements of the customers. As regarding 'Epoxy Resin', it is only stirred to reduce viscosity and packed into small containers without change in the name, character or use. Regularly hardeners and colours are also purchased from the manufactures and after transferring from larger barrels into small cans, thereafter they are packed in corrugated cartons and dispatched. Mixing is done as per the final products for Granite polish by the customers. However, as insisted by the Department, Appellant took Excise Registration and paid due amount under protest for the period from August 2015 to July 2016.

4. As regards manufacturing, Learned Chartered Accountant submits that the definition "manufacture" under Section 2(f) of Central Excise Act, 1944 includes any process, (i) incidental or ancillary to the completion of a manufactured product;

(ii) which is specified in relation to any goods in the Section or Chapter note of [the First Schedule] to the Central Excise Tariff Act, 1985 (5 of 1986) as amounting to manufacture; or (iii) which, in relation to the goods specified in the Third Schedule, involves packing or repacking of such goods in a unit container or labelling or re-labelling of containers including the declaration or alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer.

5. Learned Chartered Accountant further submits that from the above definition of the manufacture, it is clear that definition provided under the Central Excise Act, 1944 is an inclusive definition. Further submits that Appellant is undertaking only repacking activity and accordin