TMI Blog1997 (12) TMI 469X X X X Extracts X X X X X X X X Extracts X X X X ..... perintendent issued show cause notice dated 6-6-1988 stating that appellant was manufacturing dutiable product and the value declared was not correct, inasmuch as the value of pipes and pipe fittings supplied by customers, the forwarding charges, packing charges and rubber lining charges had not been included in the assessable value. The policy proposed inclusion of these additional elements in the assessable value. Appellant resisted the notice contending that the processes undertaken by the appellant did not amount to manufacture, that the articles produced were not in any manner different from the pipes received from the customers and, therefore, the product covered by the price lists was not excisable or dutiable. The Assistant Collecto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re-lining of old rollers would not amount to manufacture. The High Court of Bombay in a case held that lacquering/metallising of PVC film would not amount to manufacture. Shri M. Ali, JDR, on the other hand, referred to a decision of the Tribunal which held that re-glass lining of old and used glass amounted to manufacture. He also relied on a decision which held that cutting of aluminium circles from aluminium sheets would amount to manufacture. 4. We considered the identical contention raised by the same appellant in a batch of appeals E/1506 to 1511/89-A disposed of by Final Order Nos. 795-800/97-A, dated 2-5-1997 and took a view against the appellant. 5. The various processes undertaken by the appellant were described thus in the ea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... both steel pipes falling under erstwhile T.I. 25(15) and the present Chapter 73. It is stated that rubber lining is intended to protect the pipes from chemical reaction with liquids which may pass through the pipes when the pipes are put to use and painting outside is intended to protect the pipes from rust. It is also stated that flanges are welded into the pipes to give support to the pipes and hold the pipes in position when they are put to use in running length in factories and plants. 6. Our attention is invited to Central Excise Trade Notice published in 1988 (37) E.L.T. T7 based on Ministry s letter to Collector. The notice dealt with the question whether the process of Guniting (cement mortar coating) on the outside and epoxy/bit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal, appellant filed price lists declaring the value without including the cost of raw materials supplied by the suppliers. This could have been done only on the basis that an excisable product emerged as a result of the processes undertaken by the appellant. This conduct, of course, will not stand in the way of the appellant raising a contention that a mistake was committed in paying excise duty or in filing price list and that really there was no manufacture involved in the processes and no excise duty was payable. But, however, in this background, it would be necessary for the appellant to explain how the processes undertaken would not amount to manufacture and a new commercial product did not come into existence. No such evidence has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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