TaxTMI 
TaxTMI 
2002 (7) TMI 137
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....or the appellants explained the process undertaken at the appellant's factory as outlined in Annexure-A to the appeal memorandum. "THE PROCESS The process consists of the following steps : 1. Sawing of the logs to required size. 2. Cross cutting to required siz 3. Preservation 4 Seasoning 5. Planing SAWING Rubberwood logs received from plantations are normally 8 ft in length and girth varying from 18 inches to 60 inches. The logs from seedlings are tapered and that from bu....
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....the chemical is fixed in the wood because these are generally contact fungicides. After the treatment, the wood is taken out and the chemical allowed to drain off. SEASONING 'Seasoning is the process of removal of moisture in the wood to the range 10+/-2 Moisture can be removed from wood in different ways namely: 1. Air drying 2. Conventional Kiln Seasoning 3. Vacuum Drying Air-drying has the disadvantage that it takes a very long time and also that moisture from the inner parts of the wood is not removed. Conventional drying takes lesser time than air-drying and removal o....
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....3. Shri Nambiar submitted that the following issues are to be considered in this case :- (a) Whether the treatment of rubber wood using chemicals amounts to a process of manufacture? (b) Even if the process did amount to manufacture, the resultant product could be classified as densified wood under Heading 4409.00 of Central Excise Tariff Act? and (c) Whether Department was justified in invoking the larger period to raise the demand? 4. He contended that process carried on by the appellant that in giving treatment of rubber wood using chemicals did not amount to a process of manufacture so as to att....
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....ion 'densified wood' means wood which has been subjected to chemical or physical treatment (being, in the case of layers bonded together, treatment in excess of that needed to ensure a good bond), and which has thereby acquired increased density or hardness together with improved mechanical strength or resistance to chemical or electrical agencies." 6. He submitted that on perusal of explanatory notes to HSN together with the definition as referred to above, and along with the deposition of the expert witnesses clearly indicate that not only increase of density in wood but there must be improvement of mechanical strength or resistance and this important fact has not been considered by the adjudicating authority. He said that HSN is....
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.... cases were not only adjudicated but two-quasi judicial authorities had already adjudicated the issue in favour of the assessee. By Order dtd. 24-1-1992, the Asstt. Collector of Central Excise, Tirunelveli Division has dropped the proceedings against M/s. Borax Morarji Ltd., after finding that the processes adopted by them (which were identical to that adopted by the appellant herein) did not amount to densification of wood. The said order was accepted by the Department and no appeal was preferred against the said order. Similarly, the Commissioner of Central Excise, Calcutta as per his Order dtd. 24-7-98 dropped the proceedings initiated against ASCU (India) Ltd. Since the activity was well-known to the Department, there was no justificati....