AI Drafter 
TaxTMI 
TaxTMI 
2015 (10) TMI 1724
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....t has been held that the processing operations like punching, welding, trimming, drilling of holes, level cutting of edges and galvanizing amounted to manufacture. 2. Brief facts of the case are that the appellant is engaged in the activity of erection of transmission line towers. The parts of transmission towers are assembled, piece by piece, and comprise of structural steel angles, channels etc. The transmission tower is erected using nuts, bolts, washer, springs etc. The appellant filed a classification list No.54/86-87 dated 1.3.1986 claiming that the activities like punching, drilling of holes, welding, trimming and galvanizing carried out on duty paid angles, beams and channels etc. did not amount to manufacture. The classification....
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....punching, drilling holes etc. will not result in manufacture of new item and impart a new character, identity or use to it. In support of this submission, the appellant cited the following judgments:- (i) DCST vs. Pio Food reported in 1980 (ELT 343 (SC); (ii) Gujarat Steel Tubes Ltd. vs. State of Kerala reported in 1983 (23) ECR 161 (SC); (iii) Sterling Foods vs. State of Karnataka reported in 1986 (26) ELT 3 (SC); (iv) Chougley & Co. Pvt. Ltd. vs. UOI reported in 1993 (67) ELT 34 (SC); (v) CCE vs. Crescent Chemical Equipment reported in 1990 (48) ELT 458 (T); (vi) Tungabhadra Industries Ltd. vs. CTO reported in AIR 1961 (SC) 412; (vii) CCE vs. Jayant Oil Mills reported in 1989 (40) ELT 287 (SC). He also submitted th....
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.... by the Hon'ble High Court and therefore the same is unsustainable in law. Though there is delay of about 13 days in passing the order by the adjudicating authority, but that does not make the order illegal. Therefore, we reject this argument of the learned counsel. 6.1 The other argument of the learned counsel for the appellant is that there is no change in the form of bought out items by mere punching, drilling, galvanizing etc. and they retain their identity as such. This activity cannot be termed as manufacture and, therefore, no duty is chargeable on such items. Here it is pertinent to mention the definition of manufacture , which is reproduced herein below:- "2(f) manufacture includes any process, - (i) incidental....
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.... wherein the Tribunal, after considering the number of judgments as mentioned therein, has observed in para 4 of the judgment as under:- "4. On a very careful consideration of the issue, we find that the Respondents received duty paid MS angles, rods, channels, plates, etc. and the activity carried out by them amounts merely to drilling of holes and cutting them and these are sent to the various parties for manufacture of towers. In our view, the process undertaken by the Respondents do not amount to manufacture as the MS rods, plates, angles, etc. remain the same even after the process have been carried out. Therefore, there is no new manufacturing process involved. In our view the impugned order of the Commissioner (Appeal) is le....
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....a consistent view has been taken that prior to 1.3.1988 being the date on which the tariff item 7308 was brought into effect, the process of converting bare angle into prepared angle will not amount to manufacture. The instant case relates to a period prior to 1.3.1988. Further, merely because specific entry was included viz. heading 73.08 that ipso facto does not mean that the process amounts to manufacture. The Revenue has to further prove that the process undertaken amounts to manufacture and also that the resultant products are marketable. Therefore, keeping in view all the facts and circumstances, we are of the considered view that the process undertaken by the appellant, viz. punching, welding, trimming, drilling of holes, level cutti....