Cold rolling of wire rods was held not to be manufacture, making duty and penalty unsustainable.

Reduction of the dimension or gauge of wire rods by cold rolling was treated as not amounting to manufacture because the process did not bring into existence a new excisable commodity. On that reasoning, duty and penalty were held unsustainable and the appeal was allowed.

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Issues: Whether reduction of dimension or gauge of wire rods by cold rolling amounts to manufacture and attracts duty and penalty.

Analysis: The process was held, following earlier Tribunal decisions, not to amount to manufacture because it does not bring into existence a new excisable commodity.

Conclusion: The demand of duty and penalty was unsustainable and the appeal was allowed.

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