TMI Blog2007 (5) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... he process of re-melting and adding other alloys amounts to 'manufacture' within 'the meaning of Section 2(f) of the Central Excise Act, 1944 (hereinafter referred to as 'the Act') and Central Excise Duty is chargeable thereon? 2. The facts of the case are that M/s. Mahavir Aluminium Ltd., Bhiwadi (hereinafter referred to as 'the Assessee') was engaged in the manufacture of Aluminium Products falling under Chapter 76 of the Central Excise Tariff Act, 1985. The assessee was manufacturing Aluminium Billets an4 was consuming it captively for the manufacture of Aluminium Irrigation Pipes exempted from payment of duty. The assessee was also selling the said commodity in the market by paying Excise Duty 3. It was the case of the Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nversion of Aluminium Scraps, Ingots and other alloying materials by process of melting. Billets are thus a commodity distinct from Ingots. The Commissioner also recorded a finding that "Aluminium Billets, besides being used captively, were also sold in the marked by the assessee on payment of duty @ 15% adv." 7. The Commissioner concluded : "Regarding whether aluminium billets produced at the intermediate stage by the assessee as per the process discussed in para A supra amounts to manufacture. I find that a billet as different article emerged as a result of melting of ingots/scrap of aluminium and other alloying metals and is having distinct name, character or use and as per Section 3 of Central Excise Act, 1944 these are goods whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave heard the learned counsel for the parties. 11. It was submitted by the learned counsel for the Revenue that CEGAT has committed an error of law in holding that the commodity remained one and the same and merely the form was changed and as such there was no 'manufacture' and Excise Duty could not be imposed by the Department. 12. The learned counsel for the assessee, on the other hand, submitted that CEGAT was right in holding that there was no change of commodity and hence there was no 'manufacture', Extrusion Ingots which are also known as Round Ingots or Billets are only a different form of the same taxable commodity, namely, Wrought Aluminium under Chapter 7601. The process or conversion of Melting Ingots into Extrusion Ingot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e event under Excise Law is 'manufacture'. The moment there is transformation into a new commodity commercially distinct and separate commodity having its own character and name whether be it the result of one process or several processes, 'manufacture' takes place and liability to excise duty under Section 4 is attracted. 16. In Union Carbide India Ltd. v. Union of India Org., 1(1986) 2 SCC 547, this Court held that in order to attract Excise Duty, the article manufactured must be capable of sale to a consumer. To become goods, an article must be something which can ordinarily come to the market to be bought and be sold. 17. In Union of India Ors. v. J.G. Class Industries Ltd. Ors,, 2(1998) 2 SCC. 32, leading decisions came t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llets 16% 21. Ingots and Billets are thus two different commercial commodities. They have separate, distinct and identifiable marketability and saleability. The assessee, no doubt, used Aluminium Billets captively but is also selling in open market. We are, therefore, of the view that the Commissioner was right in holding that the assessee was liable to pay Excise Duty and CEGAT was wrong in interfering with the order-in-original. The order of the CEGAT, therefore, is liable to be set aside. 22. For the foregoing reasons, the appeal deserves to be allowed and is accordingly allowed. The order passed by CEGAT is set aside and the order-in-original passed by the Commissioner is restored. 23. The learned counsel for the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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