1997 (8) TMI 363

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....ntral Excises and Salt Act, 1944 on M/s. Paranjape Metal Shapers Pvt. Limited and that the Asstt. Collector will workout the exact duty liability in this regard on the basis of the above findings. The ld. Collector also imposed a personal penalty of Rs. 25,000/- on the Company. Being aggrieved by this order, the appellants have filed the present appeal. 2. The facts of the case leading to the appeal are that the appellants are engaged in the manufacture of cast iron castings, cylinder blocks using shell moulding process. For manufacture of this item, sand is coated with resin to hold sand particles together and shells and cores are formed in which molten iron is poured and on cooling the molten metal, desired castings come into exis....

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.... duty can be demanded. In support of his contention, he cited and relied upon the judgment of this Tribunal in the case of M/s. Punjab Industries v. CCE reported in 1989 (43) E.L.T. 314 (Tribunal) = 1988 (16) ECR 63, in which this Tribunal had held that a Commodity undergoing many processes may yet retain its original characteristics and that such process will, therefore, not amount to manufacture as its essential character remains the same. The ld. Counsel also submitted that the Hon'ble Supreme Court in the case of Jiyajeerao Cotton Mills v. The State of Madhya Pradesh reported at 1962 Supp (1) SCR 282 equivalent to AIR 1963 SC 414, held that taxable event with respect to duty of excise is manufacture or production and not consumption. Th....

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....n coated sand was even brought into the market for the purpose of sale and purchase. He reiterated the findings of the ld. Collector. 5. Heard the submissions of both sides. We note that the Appellants are manufacturing resin coated sand. Resin coated sand is not sand actually. It has got a distinct name, character and use. It is used for manufacture of sand moulds. We also note that resin coated sand is known in the market and is sold and purchased. Thus marketability criterion is served by the commodity and, therefore, the commodity is an excisable commodity and chargeable to excise duty under Section 3 of the Central Excise Act. Thus, duty shall be payable on resin coated sand if it is cleared for sale in the market. However, the....