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TMI Blog2009 (8) TMI 454X X X X Extracts X X X X X X X X Extracts X X X X ..... f the decision of the Hon'ble Supreme Court in the case of Aman Marble Industries Pvt. Ltd. v. CCE - 2003 (157) E.L.T. 393 (S.C.), the appellant claimed that prior to 1-3-2006 the processes undertaken by them do not amount to manufacture and no duty was paid. From 1-3-2006, Note 6 was inserted to Chapter 25 of CETA, 1985. The appellants claimed the classification of the products would come under sub-heading no. 2525 12 20 and 2515 12 90 and availed concessional rate of duty under Notification No. 4/2006-C.E., dated 1-3-2006. On 5-7-2006, the Central Excise Officers visited the appellants factory and examined the processes undertaken by the appellants. They had recorded the statements of the representative of the appellants. Show cause notices were issued time to time proposing demand of duty and imposition of penalty. Commissioner confirmed the demand of duty for the entire period from April, 2005 to September, 2007 and imposed penalties along with interest. 3. In the impugned orders, Commissioner held that after introduction of 8-digit classification code from 1st March 2005 in the Central Excise Tariff Act, 1985 the decision of the Hon'ble Supreme Court in the case of Aman ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lishing or any other process for converting of stone blocks into slabs or tiles shall amount to manufacture. (b) The marble slabs processed by the appellants are classifiable under sub-heading No. 2515 12 20 and eligible for concessional rate of duty under notification No. 4/2006-C.E., dated 1-3-2006. (c) There is no Chapter Note in Chapter 68 deeming the process of sizing/treaming or polishing would amount to manufacture as mentioned in Note 6 of Chapter 25. (d) CBEC vide Circular F.No. 134/2/06-CX., 4 dated 3-9-2008 clarified that when the marble slabs still have uneven surface as when it was cut or sawn, the application of glass fibre net or resin/hardner on the marble slabs shall not take these marble slabs out of Chapter 25. Such marble slabs shall continue to be classified in Chapter 25 and the concessional rate of duty under ANotification No. 4/06-C.E., shall be available to them. (e) As per Chapter Note 1 to Chapter 68, products of Chapter 25 are excluded from the scope of Chapter 68. Thus, the products which are otherwise classifiable under Chapter 25 are excluded from Chapter 68. (f) Goods under CETH 6802 are shaped articles and worked by a stone-mason or sculptor. M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mption benefit. He submits that Board Circular would not apply in this case, because, the appellants undertook various processes as stated above and Note 2 of Chapter 68 of Tariff would apply. 7. After considering the submissions of both the sides and on perusal of the records, we find that the main contention of the ld. DR is that in the present case, marble blocks were not simply sawn but more processes were undertaken viz. sizing, edging, trimming and polishing for making the cut to size, polished marble slabs and polished marble tiles. So, the case laws relied upon by the ld. Advocate are not applicable after 1-3-2005. As such, the case laws relied upon by the appellants are discussed below:- (a) The Tribunal, in the case of Associated Stone Industries (Kotah) Ltd. v. CCE - 1992 (60) E.L.T. 639 (Tribunal) held that the marble slabs that are merely sawn from the marble blocks cannot be called as distinct commodity. The end-product, which would come into existence after the activity is completed, would still be called "marble". Thus, the original identity continues despite the several processes undergone. In the trade circles, marble slabs or the marble tiles that are manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riff, this chapter covers the products which are in the crude state or which have been washed, crushed, ground etc. but not the products which have been roasted, calcined or subjected to processing beyond that mentioned in each heading, while in the present case, the slabs, in question, are processed by applying resin and reinforced with the fibre netting and, therefore, the same are not covered under Chapter 25. The Chapter 68 of the Tariff specifically covered the articles of stone, plaster, cement etc. and Heading No. 6802.21 covers 'other monumental or building stones'. The contention is that as the appellant undertaken the process of dressing of Marble Blocks, Sawing Process, Netting Process, Crack Filling & Resin Treatment and Tiling process, therefore, the processes undertaken by the appellant amount to manufacture as the marble slabs will not remain the marble in the crude form. In these circumstances, the goods, in question, are rightly classifiable under Chapter 68 of the Central Excise Tariff. We find, the appellant are engaged in the manufacture of Marble Slabs and clearing the same under the Chapter 25 of the Central Excise Tariff. During the process of slitting, of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or Chapter Notes of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) as amounting to "manufacture". So, the process specified in Note 6 of Chapter 25 of the Tariff cannot be clarificatory nature. We agree with the submission of the ld. Advocate that the activities carried out by the appellant prior to 1-3-2006 do not amount to manufacture. 10. The Commissioner observed that Heading Nos. 2515 and 2516 cover Marble and Granite respectively in crude or roughly trimmed form or merely cut into blocks/slabs. But, if the same are carried out those processes, it would come under the expression "worked monumental or building stone" classifiable under Heading No. 6802. Reliance was placed on Note 2 of Chapter 68 of Tariff. For the convenience, the relevant portion of Chapter 68 is reproduced below:- CHAPTER 68 Articles of stone, Plaster Cement, Asbestos, Mica or similar materials Notes: 1. This Chapter does not cover: (a) goods of Chapter 25; xxx xxx xxx 2. In heading 6802, the expression "worked monumental or building stone" applies not only to the varieties of stone referred to in heading 2515 or 2516 but also to all other natural stone (for example, quartzite, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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