2006 (8) TMI 187 - SC - Central Excise

Exemption under Notification Nos. 53/65-C.E. - Classification of goods - whether the article under consideration is to be classified under Chapter Heading 68.07, as contended by the revenue or under Chapter Heading 59.09 to be eligible for exemption - Held that - article under consideration would be classifiable under Chapter Heading 59.09 and the assessee would be entitled to the exemption from payment of excise duty under the notifications in question - Decided against Revenue.

Summary

Issues:
Classification of the article under consideration under Chapter Heading 68.07 or 59.09 and whether the process of making blown grade bitumen amounts to manufacture.

Classification Issue:
The Supreme Court addressed the classification issue in the judgment. The Tribunal had accepted the appeals by the assessee respondents and set aside the duty demand and penalties imposed by the Commissioner of Central Excise. The Commissioner had classified the product "Bitufelt Type III Grade I" under Chapter Heading 68.07, but the assessee contended it should be classified under Chapter Heading 59.09. The Tribunal, relying on a previous decision, held that the product falls under Chapter Heading 59.09. The Supreme Court affirmed this finding, stating that the Revenue cannot challenge a final decision in a similar case and must apply consistent treatment to all assessees.

Manufacture Issue:
Regarding the question of whether the process of making blown grade bitumen from straight grade bitumen amounts to manufacture, the Tribunal ruled in favor of the assessee. The Tribunal's decision was based on previous rulings in other cases. The Supreme Court confirmed these decisions in a related case, thereby concluding that the process in question does not amount to manufacture. Consequently, the Court found no merit in the appeals and dismissed them.