1997 (2) TMI 235 - AT - Central Excise

Summary

Issues:
1. Classification of marble slabs/tiles and granite slabs/tiles under Central Excise Tariff.
2. Applicability of Notifications 77/83 and 77/85 based on plant and machinery value.
3. Calculation of limitation period for demand of duty.
4. Whether the processes carried out by the appellants amount to manufacture.

Classification of Marble and Granite Slabs/Tiles:
The judgment addresses the classification of marble and granite slabs/tiles under the Central Excise Tariff. The impugned order classified marble slabs/tiles under T.I. 68 up to 16-3-1985 and under T.I. 23E after 17-3-1985. It also classified granite slabs/tiles under T.I. 68. The Tribunal, following the decision in the case of Kotah Stones P. Ltd., held that the process of cutting, edging, trimming, and polishing of marble blocks to form marble slabs/tiles does not amount to manufacture. However, the process of sawing and polishing of granite blocks to form granite slabs/tiles does amount to manufacture and is classifiable under T.I. 68. The Tribunal ruled that no duty can be demanded on marble slabs/tiles produced by the appellants, setting aside this portion of the Additional Collector's finding, while upholding the finding in respect of granite slabs/tiles.

Applicability of Notifications 77/83 and 77/85:
The judgment discusses the applicability of Notifications 77/83 and 77/85 based on the value of the plant and machinery of the appellants. It was held that the benefits of these notifications were not available to the appellants since the value of their plant and machinery, including electrical panels, exceeded the limit of Rs. 20 lakhs.

Calculation of Limitation Period:
Regarding the calculation of the limitation period for the demand of duty, the Tribunal agreed with the appellant's counsel that the period of limitation should be computed with reference to the date of the notice issued by the Additional Collector on 10-11-1989. The Tribunal held that the entire demand was barred by limitation based on the Tribunal's order in the case of Patel Metal Works, where a similar situation was considered.

Manufacture Processes and Limitation Period:
The judgment also discusses the processes carried out by the appellants and their impact on the limitation period. The Tribunal found no substance in the objection raised by the Departmental Representative that the process of manufacture by the appellants was not available on record. Following the decision in the case of Kotah Stones P. Ltd., the Tribunal held that no duty could be demanded on marble slabs/tiles produced by the appellants. The Tribunal held that the period of limitation for the demand of duty would be reckoned from 10-11-1989, rendering the entire demand barred by limitation.

In conclusion, the appeals were disposed of based on the above analysis and findings.