TaxTMI 
TaxTMI 
1988 (9) TMI 139
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....rom dolomite mines into its powder and chips forms would amount to process of manufacture. The exact process of manufacture as given in the order-in-original passed by the Assistant Collector of Central Excise is as follows : "After the excavation of the mineral dolomite, it is either sold out as it is in the form of dolomite lumps or brought to the factories for bringing the lumps into smaller shape that is in the form of dolomite chips and/or dolomite powder. Dolomite is a mineral product taken out from mines in lumps. To create utility of such lumps it has to be rendered into either powder form or in chips form." 3. The learned SDR, Shri V.M. Doiphode appearing for the appellant-Collector has urged that dolomite in lump form is hot....
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....ourt's judgment in the case of Hyderabad Asbestos Cement Products Ltd. v. Union of India [1980 E.L.T. 7351. The learned SDR submits that in that .case a question arose whether, asbestos fibre produced from the asbestos rocks was a result of process of manufacture or not, Hon'ble Delhi High Court applying the aforesaid test laid down by the Supreme Court, came to the conclusion that "asbestos fibre is a marketable commodity and is known to the market and is saleable as such. It is also not disputed that asbestos rock which is mined by the petitioner is as such not saleable in the market. Great and intensive process is required before the asbestos rock which is mined by the petitioner can be converted, transformed and put into the market as a....
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....to powder and chips brings Into existence a new commodity having different name, character or use and as such is rightly chargeable to duty under Tariff Item 68 as it then stood. 4. Controverting the aforesaid contentions, learned consultant for the respondents states that the process of crushing and grinding in the instant case is not a process of manufacture. Before crushing and grinding it was dolomite and it remained so after application of the aforesaid process. No hew product has come into existence. He relies on Supreme Court's judgment in the case of MMTC v. Union of India and Others [1983 E.L.T. 1542]. It has been held in the said judgment that Wolfram ore concentrate having 65% concentration of W03 still remains an ore and ore ....
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....ion 2(j) of the State Act is a very wide and comprehensive definition. The said judgment of Madhya Pradesh High Court relying on a number of decisions of the Supreme Court including that in the case of Delhi Cloth and General Mills referred to above holds that the instant process is hot a process of manufacture. Extracts from Para 10 of the said Report in case of Behraghat Mineral Industries is reproduced below :- "Here the petitioner, after purchasing lumps of dolomite from registered dealers crushed them and sold chips and powder to glass manufacturers. What was purchased was dolomite and sale was also of dolomite; Chips and powder of dolomite are not different commercial commodity than dolomite lumps. It is not the respondents, case I....
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....n reproduced which lay down the ratio that by the instant process of crushing and grinding of dolomite lumps, no transformation into a new commercial commodity takes place. The learned. SDR's attempt to disregard this judgment of Madhya Pradesh High Court that it is a judgment pertaining to a Sales Tax Act and not to the Central Excises Act is, to our mind, not an acceptable plea. The definition of 'manufacture' in the Central Excises and Salt Act is only an inclusive definition to include some peripheral processes. On the other hand, the definition of 'manufacture' in the State Act as pointed out by the learned consultant for the respondents is very wide. Nevertheless, it is to be observed that the aforesaid judgment of Madhya Pradesh High....