TMI Blog1988 (8) TMI 246X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by rolling mills of Steel Plants i.e. Joints, channels, angles and plates various sizes, length and thickness as required. The fabrication of steel structure generally involves the following processes.. They are partly/wholly completed at their factory and the balance operations are completed, at the site. (i) Templating. (ii) Cutting to size by guillotine or oxy-planer. (iii) Drilling of holes. (iv) Assembly. (v) Welding. (vi) Bending if required. (vii) Painting and Marketing, The processes normally left for completion at site of erection are (i) Further assembly (ii) Welding/bolting. (iii) Erecting in position. (iv) Bolting/Welding in position. (v) Final painting. The structural members manufactured in factory are broadly named as following in order to facilitate identification at the time of final assembly at site :- (i) Columns. (ii) Beams. (iii) Bracings. . (iv) Purlins. (v) Rafters, ties and scantlings, struts for roof trusses, girders trusses, roof girders etc. (vi) Crane girders/gantry girders. (vii) Other members. After the semi-manufactured materials ere despatched to sites, they are assembled and erected as per the markings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t part of a single operation carried out with the purpose; of fabricating the exact type of structurals required by the customers. The contention of the company that the items fabricated by them attained names like trusses, bracings, columns, girders, beams etc. only after they were placed in their respective position at the time of erection, is also not tenable. On going through the contract, it is seen that orders are placed for fabrication of items such as columns, beams, trusses, purlins etc., the drawings submitted by the company are also in respect of items such as columns, beams, trusses, etc. The company have themselves admitted that the structural members manufactured by them in their factory are broadly named as columns, beams, bracings, purlins etc. From the details of processes and the drawings submitted by the company, I am of the view that the items fabricated by the company can not be regarded as semi-manufacture materials as contended by the company but are in fully finished and identifiable conditions. It is seen that in a few cases where the size of the columns, beams and trusses does not permit their transportation in one piece, these are manufactured in two or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icers and the range of processes recorded in the order showed that what the appellants undertake was not a simple process but a series of complicated processes resulting in the manufacture of the end-products. He submitted that in Aruna Industries (supra) the facts were different as there step by step erection was involved whereas in the present matter it was not. He submitted that the facts of Structural and Machineries (supra) were on all fours with the present matter. 6. Shri Kampani in his rejoinder submitted that the facts in Aruna Industries (supra) are exactly similar to the facts of the present matter and stated that the various structurals come into existence only when they are permanently fixed. He also pointed out that in Structural and Machinery (supra) the structurals were fixed permanently. He once again reiterated that no fabrication was involved and only cutting and drilling. 7. We have considered the arguments of both sides. In view of the heavy reliance of the appellants on Aruna Industries (supra) we carefully perused the judgment. The contracts in that case between the VSP and the appellants showed that the agreements were for construction fabrication and er ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of Agra Metal Perforators v. Commissioner, Sales Tax, U.P. Lucknow (1981) 48 S.T.C. 378. In this ruling, for the purpose of Central Sales Tax Act and the U.P. Sales Tax Act. It was held that the perforated iron sheets are different commercial commodity from iron and steel. Shri Khaitan distinguished this ruling from the facts of the present case and submitted that it was not applicable. It might be pointed out that the appellants have before us filed drawings and photographs in respect of some of the structural work carried out by them. They also filed a copy of their contract with M/s. Bokaro Steel Plant and the work orders for fabrications issued to them from time to time. We have carefully gone through all these documents and the citations relied on by the parties. The rate contract for fabrication of light/medium structures according to drawings and specifications with one coat of shop point and delivery of fabricated structures to the erection sites. Work order dated 15-10-1979, 3-3-1979, 22-11 -1979, 3-5-1979 and 19-2-1979 in substance reproduce the same description. A perusal of the contract shows that the appellants have to transport raw steel from the Bokaro Stee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... examining the meaning of manufacturing processes and observed that to constitute manufacture it is not necessary that one should absolutely make out a new thing. The Court observed that it is the transformation of a matter into something else and that something else is a question of degree, whether that something else is a different commercial commodity having a distinct character, use and name and is commercially known as such. In the same judgment the Court further observed that if by application of labour and skill an object is transformed to the extent that it is commercially known differently, it will suffice to say that manufacture has taken place for the purpose of Central Excise. The degree of transformation and labour and skill spent are irrelevant. The Court further observed that the question whether a particular process is a process of manufacture or not has to be determined having regard to the facts and circumstances of each case. Applying these principles laid down by the Supreme Court, and in the light of our observations above, there can remain no doubt that manufacture has taken place in respect of the goods under examination. 12. The judgment of the Patna Hi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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