2009 TML 76149

[PRAVEEN JOSHI]

ALL DETAIL DGFT, DELHI, AND CENTRAL EXCISE 2009 TML 76149

[Surender Gupta]

Sizing of marble blocks/slabs- The appellants were purchasing marble blocks and marble slabs for processing thereon. The blocks were subjected to processing of sizing to make it rectangular and cut into slabs of uniform thickness by using Gangsaw machines. The slabs got cracks and pin holes in some cases and pasted fibre glass sheets on one side and resin is applied to fill-in holes the cracks on the other side of the slabs for smooth transportation. Show cause notice issued and make a demand of penalty. Held that- the commissioner observed that the case of Associated Stone Industries (Kotah) Ltd. and Aman Marbles Ltd. are not applicable in the present case as the said cases pertain to the period prior to 1-3-2005 (i.e. date of introduction of 8 digit Tariff). We are unable to accept the finding of the Commissioner. We find that ratio of the above decisions are squarely applicable in this case. The activities carried out by the appellants on the marble blocks and slabs do not amount to manufacture even after introduction of 8 digit classification code in the Tariff on 1-3-2005, unless by Section Note or Chapter Note of the Tariff or by wording of the relevant heading or sub-heading, the said process has been specified as “manufacture”. Hence the demand of duty and penalty are not sustainable.

For detailed case law you need to visit: 2009 -TMI - 76149 - CESTAT, NEW DELHI

AI Summary

Manufacture classification: processing and repair of marble blocks (sizing and filling) does not constitute manufacture, so duty and penalty unsustainable.
The tribunal held that sizing of marble blocks and slabs and remedial operations such as pasting fiberglass sheets and applying resin to fill cracks do not amount to manufacture for excise purposes after the tariff reclassification, unless a Section Note, Chapter Note, heading or sub heading explicitly declares those processes as manufacture; therefore the demand for excise duty and penalty was not sustainable.