Friction cloth coming into existence at intermediary stage of the process of the manufacture of transmission of TR Beltings/V Belts and Conveyer Belts is a marketable commodity

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....dustries & Ors [1983 ELT 54 (P&H)] on the ground that there is no clear finding against the contention of the department tat the friction cloth coming into existence at intermediary stage of the process of the manufacture of transmission of TR Beltings / V Belts and Conveyer Belts is a marketable commodity. The Department considers the said friction cloth as marketable commodity. The Department considers the said friction cloth as marketable and excisable product. A copy of the judgement of the Hon'ble Supreme Court is enclosed and this may be sorupulously followed where there is different practice of assessment of friction cloth in the field formations. F.No.59/2/97-CX.1 In the Supreme Court of India Civil Appellate Jurisdiction Ci....

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....costs of this appeal in this Court;         AND THIS COURT FURTHER ORDER the this ORDER be punctually observed and carried into execution by all concerned.         WITNESS the Hon'ble Shri A-i-Mushabber Ahmadi, Chief Justice of India, at the supreme Court, New Delhi, dated this the 5th day November, 1996. Sd/- (R.P. Dua) Joint Registrar   In the Supreme Court of India Civil Appellate Jurisdiction Civil Appeal No. 4348 of 1984     Union of India & Other ... Appellants      Versus M/s Punjab Rubber & Allied Industries & Others ... Respondents   ORDER          ....

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....es, namely, friction cloth was a marketable commodity and hence it attracted excise duty. The Division Bench of the High Court in Paragraph 7 of the impugned judgement recorded a finding to the effect: "there is no manner of doubt that the process of manufacture of transmission of T.R. Beltings/ V. shapped Belts and process of manufacture of transmission of T.R. Beltings/ V. shapped Belts and conveyor Belts, produced by the petitioners, is a composite, integrated and uninterrupted process and even if some article styled as 'Friction Cloth' comes into existence at an intermediary stage, the Department is not justified in demanding excise duty on the said product, especially when it is nobody's case that this intermediary product is used or s....