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TMI Blog2000 (12) TMI 334X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeal dated 17-3-94 passed by the Collector (Appeals) vide which he had modified the Order-in-Original of the Assistant Collector regarding the excisability of the sheets of different sizes/lengths made by slitting and shearing, from flat rolled sheets in coil form. 2. The assessees M/s. Bamcee Ltd. and Interchrome Pvt. Ltd. are engaged in slitting and shearing of coils of CRCA, GI cold-rolled and cold-rolled sheets. They had been receiving duty paid materials from the open market and did the job work of slitting and shearing of the same. They claimed that their activity could not to be treated as manufacture under Central Excise Act and they even did not avail Modvat credit or deemed credit thereon. They accordingly, cleared the sli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iable, the Revenue has filed the appeal bearing No. E/1463/94-B. The other two appeals have been filed by M/s. Bamcee Ltd. and M/s. Interchrome (P) Ltd. respectively for challenging the validity of the other part of the order of Collector (Appeals) holding that where the resultant product on account of shearing and slitting fell under different sub-heading of the tariff, it would amount to manufacture and the resultant product will be chargeable to duty. 5. We have heard both the sides. 6. In the appeal filed by the Revenue, ld. SDR has contended that even if by slitting and shearing of the flat rolled sheets in coil form, the width and length of the sheets so prepared was not in any manner altered or affected, still it amounted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced while preparing the sheets, will this amount to manufacture? 10. The Collector (Appeals) had taken the view that in the first case, the activity of the appellants did not amount to manufacture as no new distinct commodity was formed and the sheets so prepared were covered by same sub-heading 72.08 or 72.09 of the Tariff. However the stand taken by the Revenue in their appeal, is that even this activity of the appellants also amounted to manufacture as new product was formed, even if the Tariff entry remained the same for inputs and resultant products. 11. The expression 'manufacture' has been interpreted by the Apex Court in various judgments. In Union of India & others v. Delhi Cloth and General Mills [1977 (1) E.L.T. (J 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o new product was manufactured by them, as even observed by the Collector (Appeals). It is not even the case of the Revenue, for having not so alleged in the show cause notice that slitting and shearing of the flat rolled sheets in coil form, of 600 mm or more, without altering the length or width resulted in the production of a new, distinct commodity. The inputs and resultant products in that case, remained covered by the same sub-headings of the tariff. The resultant products also did not satisfy the definition of 'manufacture' as laid down by the Apex Court in the above referred cases. 14. The ratio of the law laid down in M/s. Laminated Pack (P) Ltd. (supra) relied by the Revenue, is not attracted to the facts of the case. In tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of duty did not change. But their version had not been accepted by the Collector (Appeals) who observed that a distinction has to be made where the input materials and the resultant products i.e. flat rolled sheets in coil form (inputs) and flat rolled sheets prepared by slitting and shearing that inputs remained under the same tariff sub-heading and where after such process, those both fell under different tariff sub-headings and as such the conversion of the coils having width of more than 600 mm, into resultant products with width length of less than 600 mm, has to be treated as 'manufactured' products. The Collector (Appeals) has, however remanded the matter to the Assistant Collector for passing accordingly afresh order on the classifi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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