Court rules 'MONTFORT' process not manufacture under Act. Appeal rejected, Department can approach Supreme Court.

The Court dismissed the appeal, holding that the process undertaken by the assessee using the 'MONTFORT' machine did not amount to manufacture under the Act. The Court emphasized the need to appeal duty-related matters to the Supreme Court, as in this case, which involved product classification issues beyond its jurisdiction. The Department's appeal was rejected, allowing them to approach the Supreme Court within 60 days for further review.

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Issues:
1. Whether the process undertaken by the assessee amounts to manufacture as defined under the ActRs.
2. Whether the conclusion of the adjudicating authority regarding the process undertaken by the assessee is legally correctRs.

Analysis:

Issue 1: The respondent, engaged in making denim fabrics, uses a machine called 'MONTFORT' in the process. The department claims this process amounts to manufacture and attracts duty, while the assessee disagrees. The adjudicating authority favored the assessee, but the department appealed. The Tribunal upheld the Commissioner's order, leading to the current appeal by the Department.

Issue 2: The key question is whether the 'MONTFORT' machine process constitutes manufacture. The respondent relied on Section 35-L of the Central Excise Act, stating that issues related to excise duty rate must be appealed to the Supreme Court. Citing precedents like Navin Chemicals case, it was argued that matters involving duty determination should go to the Supreme Court. The Court concurred, holding that the issue pertains to product classification and is not within its jurisdiction. Consequently, the appeal was dismissed, allowing the appellant to approach the Supreme Court within 60 days.

This judgment clarifies the distinction between manufacturing processes and their duty implications, emphasizing the necessity of appealing to the appropriate court based on the nature of the issue at hand.

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