2014 (3) TMI 315 - AT - Central Excise

Denial of refund claim - Whether reduction in gauge by way of cold rolling process will amount to manufacture or not - Held that - appellant s refund claim was based on the ground that the process of conversion of SS Hot rolled patta patti into SS Cold rolled patta patti does not amount to manufacture - reducing the gauge and hardening the strips amounts to manufacture and also that S.S.patta/patties are distinct marketable commodity - product S.S. patta/patties were being manufactured from S.S.flats - conversion of S.S.flats into S.S.patta/patties amounts to manufacture and the appellants have correctly paid the duty. As such, no refund is admissible to them - Following decision of Indian Strips vs. CCE, Ahmedabad 2004 (3) TMI 230 - CESTAT, MUMBAI - Decided against assessee.

Summary

Issues:
- Whether the cold rolled stainless steel patta subjected to rerolling process amounts to manufacture.

Analysis:
1. The appeal dated 2006 was considered by the Tribunal in 2014. The appellant did not appear, so the matter was decided with the assistance of a JCDR.

2. The issue revolved around whether cold rolled stainless steel patta subjected to rerolling process constitutes manufacture. The Commissioner (Appeals) analyzed this issue in detail in their order.

3. Reference was made to a judgment in the case of Indian Strips vs. CCE, Ahmedabad-2004, where it was held that cold rolling process amounts to manufacture based on the amendment in the tariff.

4. After hearing both sides and examining the facts and pleadings, the main consideration was whether the reduction in gauge through cold rolling constitutes manufacture. The Commissioner (Appeals) had already determined that the activity amounts to manufacture based on chapter note 4 of chapter 72.

5. The Commissioner (Appeals) referred to previous decisions and noted that the conversion of SS Hot rolled patta patti into SS Cold rolled patta patti does amount to manufacture as per the new tariff provisions. The Tribunal in the case of Indian Strips vs. CCE, Ahmedabad-2004, upheld the findings that reducing the gauge and hardening the strips amounts to manufacture.

6. Ultimately, the Tribunal upheld the Commissioner (Appeals) decision, stating that the conversion of S.S. flats into S.S. patta/patties amounts to manufacture, and no refund is admissible. The appeal was rejected, and the impugned order was upheld.

In conclusion, the Tribunal found that the cold rolling process of stainless steel patta does amount to manufacture based on the provisions of the new tariff and previous judicial decisions.