1997 (6) TMI 198

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....od from 1-3-1986 to 30-4-1988 under Rule 9(2) of the Central Excise Rules, 1944 read with provisions of Section 11A(1) of Central Excise Rules, 1944. A penalty of Rs. 25,000/- was also imposed under Rule 173Q of the Central Excise Rules, 1944. 2. Ld. Advocate for the appellants submits that the appellant constructed a godown and store within their factory premises. For construction of those godowns and stores they fabricated cement blocks with their labour and from the material supplied by appellants and these cement blocks were fabricated within the appellant's factory premises. The appellants also fabricated steel item by cutting angles and other shapes and sections of steel into required sizes, drilling and punching holes etc. Th....

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....ite of construction of building for use on such site was not being leviable during the period commencing on 28-9-1986 and ending on 31-10-1988. Ld. Counsel submits that the building material falling within the Chapter 68 is exempt from duty under this exemption Notification and the benefit of this exemption Notification is fully applicable in the case of appellant. He therefore prays that the appeal be allowed. 3. Ld. SDR appearing on behalf of the respondent submits that appellant manufactured the cement blocks falling under chapter sub-heading 6807.00 and steel fabricated structurals falling under chapter sub-heading 7308.90 of the Central Excise Tariff Act, 1985 and cleared cement blocks without following the provisions of Centra....

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....he designs and specifications required for constructions of the godowns and stores in question. The fabricated steel items were used in supporting the roof of the godown and store buildings. The Tribunal in the case of S.A.E. (India) Ltd. v. C.C.E. reported in 1988 (36) E.L.T. 613 held that fabrication of steel structurals does not amount to manufacture and mere cutting to size, punching and used in constructions does not amount to manufacture as no final product comes into existence. 5. In the facts and circumstances of the present case and in view of the above decision mentioned above we hold that the fabrication of steel structurals does not amount to manufacture. 6. In respect of cement blocks it is not disputed by the R....