Manufacture by splitting marble tiles with power denied notification relief, leaving the duty demand and penalty intact.

Benefit of Notification No. 16/90-C.E. was held unavailable for marble tiles produced by splitting thick marble tiles with the aid of power, because the conversion process was treated as manufacture under the tariff entries and relevant chapters. The Tribunal relied on its earlier ruling on the merits and found no infirmity in the order confirming the duty demand. As a result, the redemption fine and penalty were also sustained, and the assessee's challenge failed.

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Issues: Whether the assessee was entitled to the benefit of Notification No. 16/90-C.E. dated 20-3-1990 in respect of marble tiles manufactured by splitting thick marble tiles with the aid of power, and whether the demand, fine and penalty were sustainable.

Analysis: The dispute turned on the duty liability arising from the conversion of non-duty-paid thick marble tiles into thin tiles by use of power. The Tribunal noted that the issue on merits stood covered against the assessee by its earlier decision, where the process of manufacture was treated as inherent in the tariff entries read with the relevant chapters of the Tariff. On the facts, no infirmity was found in the order confirming the demand and imposing redemption fine and penalty.

Conclusion: The benefit of the notification was not available and the assessee's challenge to the demand, redemption fine and penalty failed.

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