1986 (7) TMI 97

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....w compass, and the facts set out hereinafter would make it clear. Petitioner No. 1 is a partnership firm and the other petitioners are the partners. The petitioners purchase duty paid aluminium sheets and the same are cut to required sizes in the square shapes at the first stage. The pieces are further cut on the hand operated shearing machine to convert then into circular shape. Such circular pie....

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.... of topes, the claim of the department that circles are liable for payment of duty under Tariff Item 27(b) is not correct and the petitioners are not required to follow the procedure under Rule 56-A of the Central Excise Rules. The petitioners addressed a letter to the Excise Authorities to clarify the position, but having failed to receive any positive response, filed the present petition on Augu....

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....f topes. 5. Shri Mehta, learned Counsel appearing on behalf of the petitioners, submitted that the excise authorities are clearly in error in assuming that Tariff Item 27(b) is attracted to the facts of the case. The submission of the learned Counsel is correct and deserves acceptance. It is undoubtedly true that Tariff Item 27(b) provides for levy of excise duty on the manufacture of circles f....

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.... the circles manufactured by the petitioners for the process of manufacture of topes are not removed from the factory or sold in the market. In these circumstances it is difficult to hold that every process at the intermediate stage amounts to a manufacture and is liable for payment of excise duty. Shri Rege, learned Counsel appearing on behalf of the Department, relied upon the decision of the....