Granite slab cutting and polishing treated as manufacture, while limitation and export remission issues were sent back for fresh review.

Cutting and polishing granite slabs was treated as manufacture for excise purposes, and the processed goods were held not to qualify as handicrafts, so duty under the tariff entry was upheld. The plea of limitation and the claim for remission of duty on exported goods were not finally resolved because the alleged departmental letter and its receipt were not properly examined. Those factual questions required fresh adjudication, so the matter was remitted for de novo consideration on limitation, valuation, and remission.

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Issues: (i) Whether cutting and polishing of granite slabs amounted to manufacture and whether the goods could be treated as handicrafts exempt from duty; (ii) Whether the plea of limitation and the claim for remission of duty on exported goods required reconsideration.

Issue (i): Whether cutting and polishing of granite slabs amounted to manufacture and whether the goods could be treated as handicrafts exempt from duty.

Analysis: The activity of cutting and polishing granite stones was held to amount to manufacture in the light of the Tribunal and Supreme Court authorities relied upon. The goods were also held not to fall within the ambit of handicrafts. Duty was therefore attracted under the tariff heading invoked by the department.

Conclusion: The issue was decided against the assessee.

Issue (ii): Whether the plea of limitation and the claim for remission of duty on exported goods required reconsideration.

Analysis: The letter said to have been addressed to the department and acknowledged by an Inspector had not been examined, and no verification appeared to have been made regarding its receipt or effect. The plea of limitation based on departmental knowledge and the claim relating to exported goods had not been adequately considered in the order under challenge. The matter therefore required fresh examination on these aspects.

Conclusion: The matter was remitted for de novo consideration on limitation, valuation, and remission on exported goods.

Final Conclusion: Duty liability on manufacture was upheld, but the order was set aside and the dispute was sent back for fresh adjudication on the unresolved issues.

Ratio Decidendi: Cutting and polishing of granite slabs constitutes manufacture for excise purposes, but where the plea of limitation or remission turns on disputed factual compliance and departmental knowledge, those questions require fresh adjudication on the evidence.

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