1996 (7) TMI 556

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....moval of natural resins resulting in loss of density in the case of pencil slats and seasoned timber shall amount to manufacture or not. 2. The facts of the case are that the appellants are engaged in the manufacture of pencil. For manufacture of pencils, they purchased green slats from the market and subjected it to the process as stated above. The department alleged that the process to which the green slats are subjected amounts to manufacture and therefore, asked the appellants to explain as to why the process described by them in obtaining the treated and seasoned slats should not be treated as a process of manufacture. 3. The Asstt. Collector after examining the submissions of the appellants held that the processes undertak....

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....ster. The ld. Counsel submitted that their case was fully covered by this decision of the Apex Court and therefore, prayed that the appeal may be allowed. 5. Shri J.M. Sharma, the learned DR submitted that the type of processes undertaken by the appellants brought into existence a new product with distinct properties. He submitted that green slats after undertaking the processes described by the appellants did not remain green slats which became a product fit for use in the manufacture of pencils. He referred to the processes undertaken stating that the product was subjected to heat treatment with the aid of steam at a very high temperature and pressure; that this treatment was subjected to processes for proper penetration of colourin....

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.... or properties different from what it has been processed from. Timber slats cannot withstand a temperature of 80oC and pressure of 150 to 175 PSI unless they are treated. This clearly provided timber slats with different properties as this high temperature in the process provided timber slats a character of penetration of colouring material. Further we also find that treatment of softening the product and removal of natural resins from the timber slats, provided the product distinct quality with definite character and use. The ld. Counsel submitted that at this stage that no evidence has been brought on record by the department to prove that the timber slats after processing were differently known. We find that in the instant case, a defini....