1993 (5) TMI 77 - Commissioner - Central Excise

Summary

Issues:
- Whether PVC coating on G.I. steel wire amounts to manufacture or not.
- Applicability of previous case laws under the new tariff.
- Interpretation of the definition of 'manufacture' under the Central Excise Tariff Act, 1985.

Analysis:
1. The appeal was filed by M/s. D.K. Electrical Industries against the order vacating the protest lodged by the appellant for PVC coating of steel wires, which the Asstt. Collector deemed as manufacturing attracting excise duty.

2. The appellant contended that PVC coating on G.I. steel wire does not amount to manufacture and challenged the imposition of excise duty under sub-heading 8544.00. They argued that the process did not change after the revision of the tariff and no new product emerged.

3. During the personal hearing, the consultant for the appellant reiterated the grounds of appeal and cited several case laws to support their position.

4. The main issue to be considered was whether PVC coating on G.I. steel wire amounts to manufacture.

5. The appellant raised several points challenging the impugned order, including the assertion that PVC coating does not change the utility, character, or use of the wire, and that it is not an incidental process to the completion of the manufactured product.

6. The appellant cited various case laws to support their argument that PVC coating of G.I. wires does not amount to manufacture and sought a refund based on these precedents.

7. The Collector's finding that decisions under the old tariff are not applicable to the new tariff was contested by the appellant, who argued that unless there is a change in the statutory description, judgments under the old tariff should apply to the new tariff.

8. The definition of 'manufacture' under the Central Excise Tariff Act, 1985 was analyzed, particularly clause (ii) which includes processes declared as manufacture in section and chapter notes. Since PVC coating was not stipulated as a manufacturing process in the relevant notes, the Tribunal's decision that PVC coating does not amount to manufacture was upheld.

9. Previous cases such as Cable House v. CCE and Shakti Insulated Wires Pvt. Ltd. v. UOI were referenced to support the conclusion that PVC coating on G.I. wire does not constitute manufacture.

10. Considering the arguments and precedents cited, the appeal was allowed, and it was held that PVC coating of G.I. wire does not amount to manufacture, and hence no duty is payable. The impugned order vacating the protest was set aside.