1994 (12) TMI 150

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....ed had entered into a contract with M/s. Dhampur Sugar Mills Limited, Dhampur, for conversion of old 70/30 Brass Tubes into new tubes, and the party supplied old brass tubes weighing 3444 Kgs which were received on 31-1-1981 and the same were manufactured by them out of old brass tubes and despatched to the party vide Gate Pass No. 36, dated 23-2-1981 on payment of Central Excise duty. It was contended before the Assistant Collector that no duty was to be paid as the old brass tubes were converted into new tubes by the assessee and duty was already paid on old brass tubes. They also quoted Central Excise Notification No. 213/63-C.E., dated 28-12-1963 as amended which exempted pipes and tubes of copper falling under sub-item 3 of Item No. 26....

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....ufacture. Being not satisfied with the order of the Collector (Appeals), the assessee has filed an appeal before the Tribunal. 2. Shri Gopal Prasad, the learned advocate, has appeared on behalf of the appellants and pleaded that the conversion of old tubes into new tubes does not amount to manufacture. In support of his arguments, he referred to the decision cited before the adjudicating authority i.e. South Bihar Mills Ltd. and Another etc. and Tata Chemicals Ltd., Bombay v. R.M. Desai Inspector Central Excise, Mithapur and Others, reported in 1978 (2) E.L.T. (J 336) and also other decisions mentioned in the Order-in-Original. He also referred to the decision of the Bombay High Court in the case of Century Spinning and Manufacturin....

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....roduced below : "2(f) "manufacture" includes any process incidental or ancillary to the completion of a manufactured product". A perusal of the above shows that manufacture is a process of incidental or ancillary [sic] for the completion of a manufactured product. In the matter before us the mere fact that the appellants have described the goods as old tube did not take away the character of being brass scrap. Hon'ble Supreme Court in the case of Union of India and Another v. Delhi Cloth and General Mills Co. Ltd. reported in AIR 1963 SC 791 = 1977 (1) E.L.T. (J 199). Para numbers 14, 17 and 19 from the said judgment are reproduced below : *********** Here, the product is brass tube which is very well known in the market as....