Manufacture test for agglomerated marble failed; the product retained its identity as marble and fell under Chapter 25.

Agglomerated marble slabs and tiles were not regarded as a new and distinct manufactured commodity because crushing marble chips, adding pigments and binders, moulding, and applying pressure did not alter their essential identity in trade and commercial understanding. Excise duty under Section 3 of the Central Excises and Salt Act, 1944 applies only where manufacture brings into existence a product with a distinct name, character and use, and that test was not satisfied here. The goods retained their essential character as marble products, so the specific tariff entry for Chapter 25 prevailed over the residuary Chapter 68. No excise duty was therefore leviable on the product.

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Issues: Whether agglomerated marble slabs and tiles are the result of manufacture and are exigible to excise duty, and whether they fall under Chapter 25 rather than Chapter 68 of the tariff.

Analysis: Excise duty under Section 3 of the Central Excises and Salt Act, 1944 is attracted only when manufacture brings into existence a new and different article having a distinct name, character and use. The process of crushing marble chips, mixing them with pigments and binders, moulding and applying pressure did not materially alter the essential identity of the product. The material remained marble in trade and commercial understanding, and the evidence showed that agglomerated marble slabs and tiles were marketed and understood as marble products. The tariff interpretation rules also supported classification by reference to the essential character of the goods. Since Chapter 68 excludes goods of Chapter 25, and the petitioner's product was specifically described as marble, the more specific entry in Chapter 25 prevailed over the residuary entry in Chapter 68.

Conclusion: The product was not treated as a distinct manufactured commodity for excise purposes and was held classifiable under Chapter 25, not Chapter 68, with no excise duty leviable on it.

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