1996 (11) TMI 71

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....ellapally, Senior Advocate (Ms. Sushma Suri, Advocate, with him), for the respondent. Joseph Pookkatt and R.A. Perumal, Advocates, for the appellant. [Order]. - The appeal is directed against the order of a Full Bench of the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi. Two learned Members held against the appellant-assessee and one Member held in its favour. 2. It is ....

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....ve discussed how the recording of sound on such tapes could constitute manufacture for the purposes of Tariff Item 59. The dissenting Member has gone into issue, squarely framed by him, in considerable detail and has held that the recording of sound on such tapes was not manufacture inasmuch as no new substance emerged, that is to say, there was no transformation resulting in a new and different a....

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....e. With reference to Tariff Item 59 it was said that the rationale of the categorisation was that each of the categories was brought to duty at an identical rate ad valorem and it was not inconceivable that a manufacturer of tapes might also proceed to record sound on them and clear them as pre-recorded tapes. In such a case, the value of the manufactured blank tapes was enhanced corresponding to ....

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....alities that Tariff Item 59 is categorised as it is. But it is altogether different to say that by reason thereof the recording of sound on blank tapes, as done by the appellant on job-work basis, is a manufacturing process. As the Tribunal in M. Basheer Ahammed's case has rightly pointed out, even such a pre-recorded tape can have the sound erased from it and it can be used again for recording ot....