Limestone crushing and raw meal classification: size reduction was not manufacture, and Chapter 2505 did not apply.

Crushing limestone into smaller pieces was treated as a mere size-reduction process that did not bring a new and distinct commodity into existence, so it did not amount to manufacture. Raw meal or slurry was also held outside Chapter Heading 2505 because that heading does not cover products obtained by mixing limestone, clay and similar materials, and no alternative tariff classification was proposed by the department. On that basis, the duty demands on both products were found unsustainable and were set aside, granting relief to the assessee.

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Issues: Whether crushing limestone into smaller pieces amounted to manufacture, and whether raw meal/slurry was excisable under Chapter Heading 2505.

Analysis: The process of breaking limestone lumps into smaller pieces was held not to amount to manufacture, following the settled view that such processing does not bring into existence a new and distinct commodity. As to raw meal/slurry, Chapter Heading 2505 was found inapplicable because the heading does not cover products obtained by mixing limestone, clay and similar materials, and the department did not propose any alternative tariff classification.

Conclusion: The demands on both products were unsustainable and were set aside, resulting in relief to the assessee.

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