Cold rolling of steel strips not treated as manufacture; pre-deposit of duty and penalties waived pending appeal.

Cold rolling of steel strips was treated, on the facts presented, as not amounting to manufacture for duty purposes, following the Supreme Court's ruling on the same process. The Tribunal held that the later change in the tariff notes did not materially change the position for the period in dispute. On that prima facie view, the duty demand and related penalties were not shown to be payable at the stay stage, and pre-deposit was waived with recovery stayed pending appeal.

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Issues: Whether cold rolling of steel strips, on the facts of the case, could be treated as manufacture for the purpose of duty and penalty, and whether pre-deposit of the duty and penalties should be waived pending appeal.

Analysis: The Tribunal followed the Supreme Court ruling that cold rolling of strips by steel rolling mills does not amount to manufacture. It noted that the subsequent change in the tariff notes did not materially alter the position for the period in dispute. On that prima facie view, the duty demand and the connected penalties were not shown to be payable at the stage of stay consideration.

Conclusion: Pre-deposit of the duty and penalties was waived and recovery thereof was stayed.

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