2017 (2) TMI 1163

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....uty demand was confirmed on the ground that the respondent s activity of cutting, stamping and packing from coil to the pieces is amounts to manufacture and accordingly, the goods of Chapter 7223 after processing is classifiable under 7326.90 and therefore, it is liable for excise duty. The respondent filed appeal before the Commissioner (Appeals), who allowed the appeal and set aside the order-in-original. Hence, this revenue s appeal. 2. Shri V.K.Shastri, learned Assistant Commissioner (AR) appearing on behalf of the Revenue reiterates the grounds of appeal. He submits that the assessee is receiving stainless steel wires in coil form falling under Chapter 7223.00. The assessee cut the wire in required length of 500 mm/1200mm and then s....

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....he present appeal is whether the product in question was classifiable under CSH No.7326.90 as held by the adjudicating authority or under CSH No.7223.00 as claimed by the appellants. The appellants have quoted case laws wherein the Tribunal and Hon'ble High Court have come to conclusion that cutting of wires into small sizes, does not bring about any new article/product. Prima facie it appears that the appellants have a very strong case. The department too has a case since the wire in coil form and wire in small sizes, after processing, are two different things in the trade parlance and also in functional aspects and a specific tariff heading for articles of wire also exists i.e. 7326.90. 6. The personal hearing in the matter was h....

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.... Supreme Court that sawing and cutting of timber logs into smaller sizes was not manufacture. Further, in a case reported in 1989 (44) ELT 113 involving CCE, Bombay Vs. Western India Tanneries Ltd. it was held that cutting of tanned leather into various sizes, would not amount to manufacture. In the case of D&H Secheron Electrodes Pvt. Ltd. Vs. CCE, Indore 1995 (79) ELT 15 (MP) which has been relied by Gujarat High Court in 2001 (132) ELT 20 (Gujart High Court), it has been held that the process of straightening the stainless steel wire and cutting it into required sizes does not amount to manufacture, since no new product emerges, as a result of this process. It has been ascertained that this order of Hon'ble Tribunal has since been accept....