TMI Blog1989 (3) TMI 237X X X X Extracts X X X X X X X X Extracts X X X X ..... o further duty was leviable on the goods. The duty demanded is Rs. 5,80,717.90 P. The demand has been restricted to a period of six months under Rule 11A of Central Excises Salt Act. 3. The learned advocate for the appellants pleaded that the railways get the tie bars manufactured from various manufacturers and stated that the duty has been demanded under T.I.68 only from the appellants and in no other Collectorate this duty has been demanded on such goods. He pleaded that the Board, in their letter No. 139/23/81-CX, dated 9.9.81, have clarified that the tie bars will be classifiable under T.I. 26AA (i)(a). On a reference to this clarification, it was pointed out to him that in para 3, the Board have given a general clarification as under: This issue was discussed in the Central Excise 14th North Zone Tariff-cum-General Conference held at Allahabad on 25th and 26th of March, 1981. The Conference observed that in such cases, the process of manufacture would be the guiding factor for classification. If these are merely forged products they would be appropriately covered under Item 26AA (ia) and if, any process other than mere forging, is carried on, these would be classifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hes that mere punching of holes without more would not amount of manufacturing activity. The second allegation is punching holes on iron and steel plates and sheets which are already paid under TI 26AA . Obviously, the reference is to the payment of duty as iron and steel plates under TI 26AA. In these iron and steel duty paid plates, holes are punched by the appellants. The learned counsel for the appellants stated that these sheets are supplied by the Indian Railways and that they merely punch the holes according to the specifications of the customers. In this case also the activity falls short of manufacturing activity because there is mere drilling of holes on duty paid sheets. The next activity is stated to be bending, cutting and iron and steel angles falling under TI 26AA. These angles are supplied by TVS to the appellants and the angles are bent for giving them a shape. The iron and steel angles have already borne duty and the appellants merely bend them according to the specification. As the appellants had the machinery and facilities, the angles are bend as per the requirements of the customers. Shri Padmanabhan urged that the bends are in the shape of L and further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduct the character of forging. In this connection, he referred to the Order of Tribunal No.712/86-BI, dated 4.11.86 in Appeal No. E/Appeal (T)/298/81-BI in the case of Aruna Machine Tools v. Collector of Central Excise, Madras. He pleaded that the Tribunal in this case had held that the punching did not give any character to the product. He, further, stated that the trade notice cited by the learned advocate, for the appellants, regarding the assessment of the forged products, was not categorical as to the levy of the duty in respect of the tie bars as it was worded in a general manner and only principles for the assessment of forged products had been laid down. He pleaded only benefit available to the appellants would be in terms of Notification No. 206/63, dated 30.11.63 in respect of the flats manufactured by them and the tie bars were not eligible for the benefit of exemption notification as the goods after the holes had been punched moved away from the category of the term flat . He pleaded demand can be against the appellants for a period of six months and cited the case law in support of his plea as under: (i) 1987 (28) E.L.T. 483 (Trib.) (para 2) (ii) 1987 (32) E.L.T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n; and shall be clean and square, accurate in size and spaced within 1.0 mm of the dimensions shown. 11. Various material specifications are also given in the said specifications. From the above, we find that the tie bars , in fact, are to be produced by rolling process (as seen from 2.2). These are desired to be rolled to the desired dimensions and the tolerance. The holes in these tie bars are required to be formed as set out under 2.3 above by punching in one operation. 12. The learned advocate, for the appellants, pleaded that the punching has been mentioned as one of the processes of forging in the book Mechanical Metallurgy (second edition) published by Mc Graw-Hill International Book Company. The definition of the forging as given in Audels New Mechanical Dictionary for Technical Trades cited by the learned S.D.R. as under: The process by which iron or other metal is heated and hammered into shape. Such as the forging of tools, machine parts, etc." 13. We observe the question of classification of the forged product, after machining, etc. was done, came up for consideration before Hon ble Supreme Court in the case of Tata Iron Steel Co. Ltd. v. Union of India 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... op forging. 17. The term punch in the same Chambers Dictionary of Science Technology has been defined as under : Punch - A follower placed on the head of a pile in any case where the pile has been driven in beyond the stroke of the monkey. A tool for making holes by shearing out a piece of material corresponding in outline to the shape of the punch; a machine incorporating such a tool. (2) A hand tool, struck with a hammer, for marking a surface, or for displacing metal as riveting. See centre punch (Typog.) The first stage in the making of type, the letter being cut, nowadays usually by machine, in mild steel which, after hardening, is struck into copper of one of its alloys, to make a matrix from which the type is cast. 18. We observe the scope of the term forging as given in the various standard books calls for shaping of a product by the processes set out as above. Mere punching does not answer to the description of the term forging as given in the various authoritatives set out above. 19. The learned advocate, for the appellants, however, has shown that in the book Mechanical Metallurgy punch as shown is one of the processes of forging. 20. We observe th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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