2004 (5) TMI 514 - AT - Central Excise

Summary

Issues: Classification of "endless belt with cleat" under Central Excise Law.

Analysis:
1. The appeal was filed against the order-in-appeal where the respondent's appeal against the Assistant Collector's decision was allowed by the Commissioner (Appeals). The Assistant Collector classified the product under chapter heading No. 4010.90 and demanded a differential amount, which was confirmed. However, the Commissioner (Appeals) reversed this decision, leading to the revenue's appeal.

2. The appellants purchased duty-paid endless belts from the market and attached "cleats" to them. The revenue argued that this activity constituted the manufacture of endless belts under chapter heading No. 4010.90. The revenue cited a circular to support their claim, stating that joining the ends to obtain endless belts would be considered "manufacture" under Central Excise Law. However, the issue at hand was not the manufacture of endless belts but the attachment of cleats to already purchased endless belts.

3. During the hearing, the DR presented arguments, while the respondents requested an adjournment.

4. The Tribunal clarified that the core issue was not the manufacture of endless belts but the fixing of cleats onto purchased endless belts. It was emphasized that there was no provision in the Central Excise Law to consider attaching cleats as a manufacturing process. Consequently, the revenue's appeal was dismissed, as fixing cleats to endless belts purchased from the market did not constitute a manufacturing activity under the Central Excise Law.