1984 (4) TMI 287

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....the Tribunal for disposal in terms of the provisions of Section 35P(2) ibid. 2. The facts of the case are that the respondents paid duty on re-shelling of Roller Shafts under Item 68 of the Central Excise Tariff. By a letter dated 29-2-1980, they contested the duty liability on such re-shelled product on the ground that it does not involve manufacture of any new article. The Assistant Collector negatived this and held that re-shelling of roller shaft was "job work" on which excise duty was leviable under Notification No. 119/75, dated 30-4-1975. However, by the impugned order, the order of the Assistant Collector was set aside on the ground that no new article with a distinct name and character is manufactured and hence no liability....

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....arges for re-shelling and/or re-grooving including cost of labour and materials is about fifteen to seventeen thousand only. For the sake of economy, re-conditioning of these costly goods is required so that they can be used over and over. The roller shaft do not become scrap simply because the grooves into the outer shell get worn-out. The process undertaken cannot be construed as 'manufacture', the essence of which is that a different thing should be made from that out of which it is made. The Sugar Mill roller shafts remain such before as well as after treatment and no new and different article emerges. The order of the Appellate Collector is, therefore, correct. The liability to duty under Tariff Item 68 arises only when goods are manuf....

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....y reiterated these contentions. He cited 1981 E.L.T. 176 - Century Spinning and Manufacturing Co. v. Union of India, which held that re-making of spinnerettes from those used once does not amount to manufacture of new goods. The Board have also held that re-conditioning of metal containers does not amount to manufacture, Tariff Advice 40/75, dated 19-9-1975. He also relied on Oudh Sugar Mills v. Union of India - 1982 E.L.T. page 937, where it was held the word "manufacture" as a verb means bringing into existence a new substance and not merely to produce same change in substance. It also includes any process incidental or ancillary to the processing of a manufactured product under Section 2(f). Shri Roy also referred to a King's Bench decis....