CESTAT rules in favor of appellants on excisability of Aluminum Circles & Strips

The Appellate Tribunal CESTAT, New Delhi, ruled in favor of the appellants in a case concerning the excisability of Aluminium Circles and Strips they manufactured. Citing legal precedents, the Tribunal held that the processes involved did not amount to manufacturing under the relevant law. Consequently, the impugned duty imposition was set aside, and the appellants' appeal was allowed with any lawful consequential relief. The decision was pronounced on 4-1-2005.

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Issues: Excisability of product manufactured by appellants

In this appeal before the Appellate Tribunal CESTAT, New Delhi, the controversy revolves around the excisability of the product manufactured by the appellants, who are engaged in the production of Aluminium Circles and Strips. The authorities below had imposed duty on the appellants, considering their activities as manufacturing. However, the Tribunal referred to precedents, such as the case of Bothra Metal Indus. v. CCE, Vadodara, where it was held that certain processes like cutting, slitting, and breaking into sizes did not amount to manufacture under Section 2(f) of the Act. Similarly, the Apex Court's decision in CCE v. Steel Strips Ltd. emphasized that certain products did not undergo a manufacturing process, thereby not attracting duty.

The Tribunal, in light of the legal precedents and the specific activities of the appellants, set aside the impugned order under appeal. Consequently, the appeal of the appellants was allowed with any consequential relief as permissible by law. The operative part of this order was pronounced in open court on 4-1-2005.

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