1986 (6) TMI 221

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....ard to the processes of cutting, sizing, galvanizing and punching etc. The Appellate Collector held that M/s. R.S. Steel Works had manufactured new goods since, according to him, they also erected towers for which they manufactured the components. He came to the conclusion that M/s. R.S. Steel Works manufactured towers by referring to a contract No. ETDC/TD/50(A) which was for design, fabrication and galvanizing, painting of towers. 2. The appellants maintain that the Appellate Collector was mistaken to refer to this contract, because it had not been signed. He himself referred to the contract as a draft contract. The appellants maintain that they received MS angles which they subject to the process of cutting, galvanizing, punching etc.....

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....angles and sections would change their character into a new product. That they go to make a transmission tower is true, but that will not make the transmission tower an article like sugar crystallizer which is a manufacturing machinery made out of sections of steel and various other components like electric motors and formed into a new and distinct commodity, a sugar crystallizer, very different from the steel sheets, angles and sections, motors, engines from which the crystallizer is formed. The sugar crystallizer was, in fact, manufactured as a complete machinery in a factory which specialised in the manufacture of such crystallizers and involved total change. Some of the steel sheets for example had to be bent, shaped and welded to form ....

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....ook at any transmission tower will establish this. No angle or section loses its product shape as such angle in fact, its very shape is its utility in the tower. The reason is simple : weight for weight the piece of metal in the shape of an angle is far stronger than the same piece without the angular shape. So when a tower is built, the engineer prefers an angle to a flat shape for a supporting role, because for the same weight, he gets in the angle much greater strength. An angle that loses its angular shape becomes unfit in a job when an angle is needed. The Assistant Collector misses the point where he says the section cannot be used anywhere but in the tower; and moreover this statement is not entirely correct and in the context of thi....