Workshop processing of steel sections did not create excisable goods; duty was not payable except on M.S. Racks.

Processing steel shapes and sections by cutting, drilling, punching, welding and similar workshop operations did not create a new marketable product, so the items other than M.S. Racks were not goods liable to excise duty. The Tribunal followed earlier decisions, including the assessee's own case, on the principle that such fabrication for construction purposes does not amount to manufacture of excisable goods. M.S. Racks were separately excluded from the dispute, and duty on them remained quantifiable and recoverable.

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Issues: Whether the items processed in the workshop, other than M.S. Racks, amounted to goods liable to excise duty.

Analysis: The items in question were processed by cutting, drilling, punching, welding and similar operations. The Tribunal followed earlier decisions holding that such processing of steel shapes and sections for construction purposes does not result in the emergence of a new marketable product. The same view had been reiterated in the assessee's own case and in other cited orders. M.S. Racks were separately excluded from contest, and duty thereon was left to be quantified and recovered.

Conclusion: The items other than M.S. Racks were held not to be goods and no excise duty was payable on them. The appeals succeeded to that extent, while duty on M.S. Racks remained recoverable.

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