1994 (12) TMI 148 - AT - Central Excise

Summary

Issues:
Classification of U-Bolts and U-Clamps under Tariff Item 52 of Central Excise Tariff and determination of whether the appellant's activity amounts to "manufacture" under the Central Excises and Salt Act, 1944.

Analysis:
1. The primary issue in this case was whether the appellant's activity of getting thread rods and bending them into U-Bolts and U-Clamps constituted "manufacture" under the Central Excises and Salt Act, 1944. The appellant argued that the process did not amount to manufacture, citing relevant judgments. However, the tribunal disagreed, stating that the activity transformed the product into a new one with distinct characteristics, thus constituting manufacture. The tribunal noted that the appellant's process went beyond mere fixing of thread studs and resulted in a new product.

2. The second issue involved the classification of the goods under Tariff Item 52 of the Central Excise Tariff. The tribunal referred to the Supreme Court's judgment in the Plasmac Machines case, which dealt with a similar issue regarding Tie Bar Nuts. The tribunal applied the principles laid down in the Plasmac case, emphasizing that the function of the goods in question, i.e., U-Bolts and U-Clamps, was relevant for classification. The tribunal also cited another Supreme Court judgment related to nuts and nut fittings, further supporting the classification under Tariff Item 52.

3. The tribunal highlighted that the appellant's goods were commercially known and sold as nuts, aligning with the criteria set out in the Supreme Court judgments. By following the precedents and reasoning provided in the Plasmac and Jayshree Engineering Works cases, the tribunal upheld the classification of the goods under Tariff Item 52. Consequently, the tribunal dismissed the appeal, affirming the sustainability of the impugned order in law based on the established legal principles and precedents cited.

In conclusion, the tribunal ruled in favor of the Revenue, holding that the appellant's activity constituted manufacture under the Central Excises and Salt Act, 1944, and the goods were correctly classified under Tariff Item 52 of the Central Excise Tariff based on established legal principles and Supreme Court judgments.