TaxTMI 
TaxTMI 
2010 (2) TMI 395
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....ved in their production. He recorded the process of production of these goods in the following words : (1) W straps - hot re-rolled sheet of 225 mm width, 3.15 mm thickness, cut into different lengths of 2.4 mtrs, 3 mtrs, 3.6 mtrs and 4 mtrs, as per the requirement to form a structure resembling alphabet 'W', with the aid of a machine called press break machine. Holes are punched with a punching machine to insert the roof bolts. (2) Roof bolts - Steel rods of 20mm and 22mm dia will be cut into different sizes of 1.2 mtrs, 1.5 mtrs, 1.65 mtrs, 1.75 mtrs and 1.8 mtrs. Smithy work is done to form taper at one end and threading at the other end for fixing nuts. 2. In passing the impugned order, the Commissioner (Appeals) reasoned that the pu....
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..... 301 (Tribunal-LB), the Tribunal held that fabrication amounted to manufacture as raw materials like angles, plates, tubes, etc., acquired distinct shape to suit the structural design. No mere drilling of holes was involved. This decision squarely applied to the facts of the instant case. The inputs were converted into a new product with a new name in the case of both the goods. Actual purchase or sale, or their general availability in the market was not required to be proved to prove marketability. 4. Learned SDR has reiterated the grounds taken in the appeal and placed reliance on the Larger Bench decision of the Tribunal in Mahindra & Mahindra Ltd. case (supra) and Sanjay Industrial Corporation (supra). Reliance is also placed on the j....
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....abricated from steel rods of 20mm and 22 mm diameter by cutting them into different lengths of 1.2 mtrs, 1.5 mtrs, 1.65 mtrs, 1.75 mtrs and 1.8 mtrs. The item tapers at one end and has threading at the other end to enable fixing it with nuts. 8. During hearing, it was explained to us that W strap has a cross section resembling alphabet W. These are fabricated from steel sheets into the said shape using press break machine. In the mines, the W straps are used to prevent the earth falling off using these as walls and roof. Roofing bolts are used to fix the W straps in place using nuts. We find W straps to be different from the raw material hot rolled steel sheets in their shape, name and use. Steel sheets are machined using press break machi....
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....ised) concerned in Delhi Cloth and General Mills, or kiln gas in South Bihar Sugar Mills, or aluminium cans with rough uneven surface in Union Carbide, or PVC films in Bhor Industries or hydrolysate in Ambalal Sarabhai, the finding in each case on the basis of the material before the court was that the articles in question were not marketable and were not known to the market as such. The "marketability" is thus essentially a question of fact to be decided in the facts of each case. There can be no generalisation. The fact that the goods are not in fact marketed is of no relevance. So long as the goods are marketable, they are goods for the purposes of Section 3. It is not also necessary that the goods in question should be generally availab....
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....nd there must be transformation; a new and different article must emerge having a distinctive name, character or use." 9.1 In respect of W straps and roof bolts the above test of manufacture is satisfied. In the case of straps, steel sheets are suitably corrugated with a machine and then holes punched, for its particular application. Steel rods are sharpened at one end and machined to form threads at the other end. Thus roof bolts are also the result of processes applied on steel rods. 10. In Mahindra & Mahindra Ltd. case (supra) relied on by the Revenue, a Larger Bench of the Tribunal held that iron and steel material such as angles, plates, tubes, etc., when converted into parts of structures for particular use, they did not continue to....
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....andigarh, Kanpur and Chennai decision (supra) :- "The iron and steel raw material such as angles, plates, tubes, etc. are used in making part of structures and they acquired a distinctly different shape to suit the structural design. For example, if iron or Steel angles and plates are cut to make a steel table or chair which can be dismantled, it cannot be said that there are no goods manufactured because the iron and steel angles or plates remain such angles and plates though of different sizes and merely wholes are punched and screws fitted. Unlike in liquid mixtures, the raw material of iron and steel or wood will retain their identity, but it is precisely their being cut and designed, punched and fitted to make an article commercially ....