TMI Blog1984 (5) TMI 256X X X X Extracts X X X X X X X X Extracts X X X X ..... tation on 22-6-1982 and applied for cancellation of their L-4 licence. They inter alia urged that the marble slabs cut by them would not fall under Item 68 of the Tariff. They were collecting only the job-charges and their activity cannot be construed as manufacture . They also placed relince on the decision of the Appellate Collector, Central Excise, Delhi, in the case of M/s. Universal Marble India (Private) Limited at Makrana. The Assistant Collector, Ajmer, however, rejected the application for cancellation of L-4 licence and for exempting the firm from excise control. Aggrieved by the order, an appeal was preferred to the Appellate Collector, Central Excise, New Delhi. He set aside the order holding that mere sawing of rough marble blocks into slabs would not amount to manufacture . 3. Oh behalf of the Appellants, Shri Laxmi Kumaran, SDR, argued that the process of sawing marble blocks by the use of sophisticated machinery would bring into existence a commercially identifiable product, viz., marble slabs which have a distinct name, character and use. The marble slabs are usable and make table as such; the marble slabs are distinct from raw materials, viz. the marble block ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Respondents argued that mere slicing of the marble slabs from the marble blocks would not amount to manufacture . He placed reliance on the following rulings :- 1. 1980 E.L.T. page 343 (Deputy Commissioner of Sales Tax v. PIO Food Packers). 2. AIR 1972 Supreme Court 2551 M.M.T.C=1983 E.L.T. 1542 (S C). 3. 1977 E.L.T. 199 Union of India v. Delhi Cloth Mills. The learned Counsel pointed out that the identity of the cut slabs did not result in any change, and continued to be known in trade circles as marble throughout. Unless the product has a distinct name,.character and use, mere process cannot be construed as a manufacturing activity. There could be no manufacture if during the several changes in processing there is a continuing, substantial identity. The burden of proving the liability for duty would be on the Deptt. and no materials have been placed to show that the Appellate authority was wrong. In support of this contention, he relied on the ruling reported in AIR 1980 Supreme Court 612 (Deputy Commissioner, Sales Tax v. G.S. Paid Co.); 1980 E.L.T. 249; Garware Nylon v. Union of India and also 1979 E.L.T. 543 : Sanghvi Nonferrous Metal Industries v. Union of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tiles that are manufactured after cutting the edges,, trimming, polishing and other processes, continue to be known as marble. Unless it is proved that by virtue of the sawing process, a different or distinct commodity comes into existence, the process cannot be equated to manufacture. It is wrong to say that by the application of one or more processes, if the raw material indicates a change, that change would necessarily amount to manufacture. In order to fall within the ambit of excisable goods , the process applied should result in goods which could originally come to the market to be bought and sold. The intermediate state, as distinguished from the final product, could in most cases be a question of degree, but as Justice Holmes has said among distinctions of law are often distinctions of degree . 8. Marble as noticed from Encyclopaedia Britannica often occurs as. metamorphic rocks. The quarry of marble is very limited. Channelling machines are utilised to make cuts wide and deep. The marble blocks, outlined by joints and cuts are separated by driving wedges into drill holes. It further reads mill-sawing into slabs is done with sets of parallel iron blades that move ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order passed by the Collector (Appeals) which is in favour of the Respondents. The burden of proof in such cases is on the revenue. We nave only to refer to the decisions reported in 20 STC 520; 1979 E.L.T. 543 and 1980 E.L.T. 249. The Deptt. has not specified any materials in the show cause notice which would lead us to the conclusion that cut marble slabs could be considered a different and distinct commercial commodity. Of course, marbles of various kinds are widely used in the construction of buildings. But Shri Ravindra Narain, Advocate, pointed out that before marble tiles could be fixed at specified locations they should undergo several other processes like cutting of the edges, polishing, dressing etc. If such processes have to be treated as manufacture, then there should be specific indication in the Tariff Item. Otherwise it would lead to double or even multiple taxation. On the present facts, we are unable to hold that such a degree of proof has been adduced. As laid down in the case reported in 1978 E.L.T. 180 at page 186, there may be instances where there are separate and different processes of manufacture, each process resulting in such transformation that a new and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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