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TMI Blog1933 (10) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... ime were classifiable under Tariff Item 68. The process of manufacture undertaken by the appellants involved the crushing to the required fineness of lumps of minerals Diaspore and Pyrophylite which have high Alumina content. The appellants were served with a show cause notice dated 8-8-1986 alleging contravention of Rules 9 and 174 on the grounds crushing of lumps of mineral into powder amounted to manufacture and they had failed to apply for a Central Excise Licence after crossing the exemption limit of Rs. 24 lakhs during the year 1982-83 as provided under Notification No. 2/81 and they cleared excisable goods without payment of duty after crossing the exemption limit as required under Notification 77/83. The show cause notice required t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rwal contended that the judgment of the Madhya Pradesh High Court in the case of Kher Stone Crusher v. G.M. District Industries Centre reported in 1992 (61) E.L.T. 586 (M.P.) holding that process of conversion of stones into 'gitties' ballast and metal in crushers gives rise to a new commercial commodity and hence, amounts to 'manufacture' was distinguishable on facts from the case of Bheraghat Mineral Industries v. Divisional Dy. Commissioner of Sales Tax. He submitted that the appellants' case was covered by the Tribunal's decision in the case of M/s. Pyrites' Phosphates and Chemicals Limited, Bihar reported in 1983 (12) E.L.T. 537 wherein it was held that crushing and sieving of pyrites was not a process of manufacture. He stated that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellants in respect of sales of lumps varying in size from 1" to 12" filed by the appellants, it was evident that even the lumps sold were obtained by crushing the mineral into lumps of the required sizes. She argued that on the ratio of the Tribunal's decision in the case of M/s Associated Soap Distributing Co. (P) Ltd., crushing of 'Diaspore' and 'Prophylite' into lumps of specified sizes or powder has to be deemed as amounting to 'manufacture' since the products obtained after crushing are marketable and they have distinct name, character and use. 4. We have examined the records of the case and considered the submissions made on behalf of both sides. It is seen that the only point that arises for consideration in this case is whether cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the form of lumps are products which are different in name, character and use from Diaspore and Prophylite in the form of powder or smaller sized lumps obtained by grinding or crushing of mined lumps of these materials. 7. It is seen that in the case of Associated Soap Stone Distributing Co. (P) Ltd. v. Collector of Central Excise, Indore relying upon the judgment of the Supreme Court in the case of Empire Industries Ltd. reported in 1985 (20) E.L.T. 179, the Tribunal has held that the name, character and use of soap stone lumps and soap stone powder are not the same, they are two distinct products and therefore their conversion into powder amounts to manufacture as envisaged in Section 2(f) of the Central Excises and Salt Act, Paras 6 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rocess of conversion of stones into gitties, ballast and metal in crushers gives rise to a new commercial commodity and hence, amounts to manufacture. 9. In support of their case the appellants have also placed reliance on the Tribunal's decision in the case of Pyrites, Phosphates and Chemicals Limited, Bihar v. Collector of Central Excise, Patna reported in 1983 (12) E.L.T. 537 wherein it was held that crushing and sieving of Pyrites is not a process of manufacture. In this case the main point that arose for consideration was whether the premises covered by the definition of 'Mine' under the Mines Act, 1952 could be deemed as a 'factory' under the Factories Act, 1948. Hence this decision also cannot be of any assistance to the appellants. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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