1992 (9) TMI 232

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....refund claim for an amount of Rs. 30,59,145.20 for the period from 14-3-1988 to 25-6-1988, on the ground that recording of sound and image is not a process of manufacture, but an activity to transfer sound and image on blank video cassettes from U-matic video cassettes. The Asstt. Collector and the Collector rejected the claim of the appellants. Hence, the appeal before us. 3. The arguments of Shri R.G. Sheth, Advocate is that in view of the order of this Tribunal in the case of M. Basheer Ahammed v. CCE - reported in 1990 (48) E.L.T. 591 (T), the activity of recording of sound on duty-paid blank cassettes or cassette tapes is not a manufacture. He further submitted that transfer of sound and image is through electronic signals from alre....

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....he tariff schedule it becomes excisable irrespective of the fact whether the process amounts to manufacture or not. According to him re-recording amounts to manufacture as recording includes re-recording. He also relied upon an order of this Tribunal in the case of Safari Industries (I) Pvt. Ltd. v. CCE, Baroda reported in 1991 (54) E.L.T. 308 (Tribunal) =1991 (37) E.C.R. 303 (T). 5. The question under the above circumstances is whether the re-recording of blank video cassettes amounts to manufacture. The relevant tariff heading reads as follows :   85.24 Records, tapes and other recorded media for sound or other similarly recorded phenomena, including matrices and masters for the production of records, but excluding produc....

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.... a higher rate. This provision itself makes it clear that the legislature was aware that billets are converted into circles and it was decided that excise duty should be leviable at both stages. When the legislature used the word 'manufacture' in connection with circles after having taken account of the fact that the billets were already subject to excise duty, it is obvious that the process, by which the billets were converted into circles, was held by the legislature to amount to manufacture." 7. In other words by incorporating a particular item in the tariff schedule the legislature makes that product liable to excise duty irrespective of the fact whether the process strictly falls within the meaning of the word 'manufacture' under Se....