9911796707
TMI Blog1986 (12) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod 1-4-1978 to 31-3-1979 and the duty actually paid by them on the basis of job charges. The respondents were holders of a Central Excise licence for manufacture of Soap stone powder falling under T.I. 68 C.E.T. and it was in connection with such manufacture that the above notice had been issued. The respondents resisted the claim contending that the conversion of soap stone lumps into powder did not constitute manufacture requiring payment of Central Excise duty and that in any event the demand was not sustainable as duty payable had been properly paid and that the demand was further time barred. On adjudication the Assistant Collector under his order dated 13-2-1980 rejected the defenses above said and confirmed the demand. On appeal t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent varieties is not done by the respondents. He pleads that the respondents merely grind the lumps into powder and deliver the resultant powder to the customer. But it may be seen in this connection that the finding of the Assistant Collector is as follows: "As per the facts brought on record it was evident that the party ground the soap stone lump into powder of specified fineness and qualities with the aid of power and soap stone powder was being manufactured as per specified requirements of different industries at varied prices by the supplier M/s K.C. Ghutani. It would therefore be apparent that soap stone lumps were being powdered with conscious attempt to produce grades and qualities of powder to meet requirements of specified type ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Hyderabad Asbestos Cement Company Ltd. may not be strictly applicable to the facts of the instant case for the reason mentioned by Shri Bhattacharya his contention in respect of the case reported in 1983 E.L.T. 1192 does not appear to be proper, just as in that case it was only the powdered form that was useable as fertilizer it is only powdered form in the present case that could be put to various industrial uses such as fillers, extenders etc. 6. This aspect has been considered in 1985 Vol. 22 E.L.T. 109 at paragraph 7 where it is observed as follows: "Applying the well-known test laid down by the Supreme Court as reiterated above, we observe that soap stone powder was different in appearance as compared to soap stone lumps. The Colle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts by that test. It may be that no extraneous matter is added to the powder. But nothing turns on that factor." 7. The decision of the Supreme Court referred to in the said paragraph in the case of M/s. Empire Industries Ltd. (1985 Vol. 20 E.L.T. 179). The above said observations equally apply to the facts of the present case and we accordingly hold that the conclusion of the Appellate Collector that the activity of the respondents in grinding soapstone lumps into soapstone powder of required fineness would not amount to manufacture is not correct. 8. As earlier mentioned two other defences had been raised before the Assistant Collector, one on the basis that liability for payment of duty was on job charges only and the other re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "talc (talcum; soapstone; steatite) Mg3Si4O10(OH)2 or 3 MgO. 4SiO2 : H2O. A natural by drous magnesium silicate. Compact massive varieties may be called steatite in distinction from the foliated varieties, which are called talc. Soapstone is an impure variety of steatitle." It is therefore clear that soapstone and talc are the same. 11. On the other question whether in order to qualify for exemption under notification No. 23/55 the product must fall under T.I. 14 and whether in addition the use thereof in one of the manners mentioned in the notification should also be proved before exemption is granted, we may refer to the decision of this Tribunal in Collector of Central Excise v. Madhu Chemicals (1986 Vol. 23 E.L.T. 166). The ab ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
