9911796707
TMI Blog1987 (4) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... Item 22F(4) of the Tariff : (1) Rings punched from asbestos boards. (2) Two types of asbestos fabrics : (i) special fabrics in a coil of continuous length; and (ii) M.R. Grey in rolls. 2. Item 22F of the Central Excise Tariff, as in force during the material period, reads as under :- 22-F. Mineral fibres and yarn and manufactures therefrom, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power, the following, namely : (1) Glass fibre and yarn including glass tissues and glass wool; (2) asbestos fibre and yarn; (3) any other mineral fibre or yarn, whether continuous or otherwise, such as, slag wool and rock wool; (4) other manufactures in which mineral fibres or yarn or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of manufacture of each of the disputed products. They also showed us the samples of the disputed products. 5. On careful consideration, particularly after seeing the process drawings and the samples of the products, we find that the facts of the Aluminium Cans case aforesaid and those of the present case before us are clearly distinguishable. We reproduce below paragraph 7 of the Supreme Court judgment in the Aluminium Cans case : 7. The question here is whether the aluminium cans manufactured by the appellant are capable of sale to a consumer. It appears on the facts before us that there are only two manufacturers of flashlights in India, the appellant being one of them. It appears also that the aluminium cans prepared by the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the transaction was a works contract and nothing more. Apparently, the appellant made use of the requisite machinery owned by that firm for extruding aluminium cans. Not a single instance has been provided by the respondents demonstrating that such aluminium cans have a market. The record discloses that whatever aluminium cans are produced by the appellant are subsequently developed by it into a completed and perfected component for being employed as flashlight cases." It is quite evident from the above extract that the decisive factor in the Supreme Court judgment was the crude and elementary form of the aluminium cans in the Union Carbide case. There is no such factor present in the case before us. The process drawings show that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r manufacture into another identifiable product, namely, motor vehicle parts. The appellants contention that asbestos rings were a brittle and fragile article and hence not marketable is simply not true. We examined the sample of the rings very carefully. Asbestos fibre is a very strong material. If the ring is allowed to fall on the floor, nothing would happen to it. We found it neither brittle nor fragile. It was perfectly capable of being handled and transported for marketing. It would, no doubt, suffer damage if deliberately crushed or broken by application of force. But even in that sense it was far less brittle than card board and far less fragile than glassware. If card board and glassware could be marketable, why not the asbestos r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (S.C.) - South Bihar Sugar Mills Ltd. etc. v. U.O.I. Others]. The material point is that their asbestos rings and fabrics are marketable products, though marketable to a particular section of the industry only. The products having industrial application do not cease to be goods for that reason. Otherwise, a large portion of the Central Excise Tariff would be rendered negatory. The observations of the Hon ble Supreme Court in paragraph 6 of their aforesaid judgment in the Aluminium Cans case that it does seem to us that in order to attract excise duty the article manufactured must be capable of sale to a consumer", refers to a consumer who has use for the particular goods and not to the common man. The articles in dispute before us ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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