TMI Blog2017 (7) TMI 481X X X X Extracts X X X X X X X X Extracts X X X X ..... Grasim Industries Ltd. [2011 (10) TMI 2 - SUPREME COURT OF INDIA], where it was held that the metal scrap and waste arising out of the repair and maintenance work of the machinery used in manufacturing of cement, by no stretch of imagination, can be treated as a subsidiary product to the cement which is the main product - demand set aside - appeal allowed - decided in favor of appellant. - E/280/2005 - 40925/2017 - Dated:- 12-6-2017 - Smt. Sulekha Beevi C.S., Member ( Judicial ) And Shri V. Padmanabhan, Member ( Technical ) Shri M. Kannan, Advocate, for the appellant Shri S. Govindarajan, AC (AR) for the respondent ORDER Per Bench The appellants are 100% EOU and are engaged in the manufacture of 'Garnet Powder ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Grasim Industries Ltd. (supra). The relevant portion of the said decision is reproduced as under:- 8. The goods have to satisfy the test of being produced or manufactured in India. It is settled law that excise duty is a duty levied on manufacture of goods. Unless goods are manufactured in India, they cannot be subjected to payment of excise duty. Simply because a particular item is mentioned in the First Schedule, it cannot become exigible to excise duty. [See Hyderabad Industries Ltd. v. Union of India, (1995) 5 SC 338 - 1995 (78) E.L.T. 641 (S.C.), Moti Laminates (P) Ltd v. CCE, (1995) 3 SCC 23 - 1995 (76) E.L.T. 241 (S.C.), CCE v. Wimco Ltd, (2007) 8 SCC 412 - 2007 (217) E.L.T. 3 (S.C.)]. Therefore, both on authority and on prin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 963 SC 791 - 1977 (1) E.L.T. J199 (S.C.), South Bihar Sugar Mills Ltd. v. Union of India, AIR 1968 SC 922 - 1978 (2) E.L.T. J336 (S.C.) and in line of other decisions has explained the meaning of the word manufacture thus : 14. The Act charges duty on manufacture of goods. The word manufacture implies a change but every change in the raw material is not manufacture. There must be such a transformation that a new and different article must emerge having a distinctive name, character or use. 14. In the present case, it is clear that the process of repair and maintenance of the machinery of the cement manufacturing plant, in which M.S. scrap and Iron scrap arise, has no contribution or effect on the process of manufacturing of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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