2000 (1) TMI 354 - AT - Central Excise

Summary

Issues Involved:
Classification of G.I. pipes converted into Earth pipes under Section 2(f) of the Central Excise Act.

Analysis:
The primary issue in these appeals was whether the process of converting G.I. pipes into Earth pipes amounts to manufacturing under Section 2(f) of the Central Excise Act. The Appellant argued that the processes undertaken did not constitute manufacture as per relevant legal precedents. They contended that the product in question was declared not liable to duty due to the absence of a manufacturing process. The Respondent, on the other hand, argued that the processes undertaken transformed the G.I. pipes into a new commodity with distinct characteristics, making it classifiable under a specific sub-heading of the Central Excise Tariff Act.

The Appellant's Advocate highlighted that the end use of the goods should not be the sole criterion for classification and emphasized that the product should be classified based on relevant headings. The Respondent countered by stating that the processes undertaken on the G.I. pipes resulted in a new product with a different use and character, citing legal precedents to support their argument.

The Tribunal considered the arguments presented by both sides and examined the facts of the case. They noted that the processes of cutting, drilling, and pressing transformed the G.I. pipes into Earth pipes as per the samples provided. The lower authorities had found that the product had emerged as a distinct commodity with a unique function and use, different from the original G.I. pipes. The Tribunal agreed with these findings, stating that a new and different article had emerged through the transformation process, meeting the criteria of manufacture under the Central Excise Act.

The Tribunal rejected the appeals, concluding that the Collector (Appeals) had not exceeded the scope of the show cause notice by referring to relevant specifications. They emphasized that the product in question had become a distinct commercial commodity with its own characteristics and use, thus classifying it under the specific sub-heading of the Central Excise Tariff Act. The Tribunal found no grounds to interfere with the lower authorities' decision and upheld the classification of the converted G.I. pipes as Earth pipes, affirming that the processes undertaken constituted manufacturing as per the legal provisions and precedents cited.