1997 (8) TMI 363 - AT - Central Excise

Summary

Issues:
- Whether resin coated sand manufactured by the appellant is excisable goods under Central Excise Act.
- Whether the process of coating sand with resin amounts to manufacture.
- Whether duty is payable on resin coated sand cleared for sale in the market.

Analysis:
1. The Collector of Central Excise & Customs held that resin coated sand manufactured by the appellant is excisable goods and imposed duty liability along with a penalty. The appellant challenged this order, arguing that coating sand with resin does not constitute manufacturing as it retains its original characteristics. The appellant cited precedents to support their contention that no duty should be demanded if no manufacturing process occurs.

2. The appellant's advocate highlighted that resin coated sand is used for forming sand moulds and does not change its essential characteristics before and after coating. Referring to legal precedents, the advocate argued that the process of coating sand with resin does not amount to manufacturing under the Central Excise Act. The advocate also emphasized the definition of manufacture and relevant case laws to support the appellant's position.

3. On the other hand, the respondent contended that resin coated sand is a distinct product with marketability and is sold as such in the market. The respondent presented evidence of resin coated sand being commercially available and argued that duty should be levied on resin coated sand cleared for sale.

4. The Tribunal noted that resin coated sand is a separate product with distinct characteristics and market presence. It held that duty is payable on resin coated sand when cleared for sale in the market. However, when resin coated sand is used captively for manufacturing sand moulds, no duty is payable. The Tribunal referred to a previous decision to support its findings and disposed of the appeals accordingly, allowing relief as per the law.

In conclusion, the judgment clarified that resin coated sand is considered excisable goods subject to duty when cleared for sale but exempt from duty when used captively for manufacturing sand moulds. The decision was based on the distinct characteristics and marketability of resin coated sand, aligning with the provisions of the Central Excise Act.