2008 (4) TMI 105

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.... The Respondents received duty paid MS angles, MS Rods, MS Plates and MS Channels. Later, they undertook the process of cuffing of the above duty paid angles, rods, plates and channels as per specification and then drilling of holes to the cut pieces to facilitate fastening with bolts and nuts while erecting towers. The angles, rods, plates, channels, etc. are classified under Tariff heading 73.08. The Respondents were supplying these parts for erection of towers. The dispute is whether the items cleared by the Respondents are dutiable and excisable. The lower authority held that the items cleared by the Respondents are parts of structures and their tariff heading 7308.90 and therefore, held that they are liable for Excise duty. Therefore h....

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....els, etc. The process undertaken by them amounts only to cutting, punching of holes and galvanisation. He strongly contended that the process do not amount to manufacture. The Commissioner (Appeals) while coming to the conclusion relied on the various decisions and dropped the demand of duty. The learned Advocate urged that the process undertaken by the Respondents do not amount to manufacture. He relied on the following decisions of Supreme Court. (i) Delhi Cloth & General Mills [1977 (1) E.L.T. 199 (S.C.)] (ii) Crane Betel Nut Powder Works v. CCE, Tirupati [2007 (210) E.L.T. 171 (S.C.)] (iii) CIT, Kerala v. TaraAgencies [2007 (214) E.L.T. 491 (S.C.)] In the light of the above, it was urged that mere cutting of MS plates, angles, chann....

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....tural design. For example, if iron or Steel angles and plates are cut to make a steel table or chair which can be dismantled, it cannot be said that there are no goods manufactured because the iron and steel angles or plates remain such angles and plates though of different sizes and merely wholes are punched and screws fitted. Unlike in liquid mixtures, the raw material of iron and steel or wood will retain their identity, but it is precisely their being cut and designed, punched and fitted to make an article commercially known that involves manufacture of an article distinct from angles, sheets, tubes etc., used in it. Mere drilling holes or mere cut ting jobs in isolation may not by themselves involve manufacture of an article, but, conv....