9911796707
TMI Blog1987 (4) TMI 209X X X X Extracts X X X X X X X X Extracts X X X X ..... t aside by the Appellate Collector of Central Excise, Bombay under his order, dated 7-10-1981. The Appellate Collector referred to an earlier order passed by him on 22-7-1981 in an appeal filed by M/s. Indian Tools Manufacturing Ltd. which order, according to him, dealt with similar goods. Following the decision in the earlier appeal he classified the goods manufactured by the respondents also under TI 68 CET. The Central Government was of the view that the said order of the Appellate Collector was not proper, legal and correct. Notice under Section 36(2) of the Central Excises and Salt Act was accordingly issued directing the respondents to show cause why the order of the Appellate Collector should not be set aside and suitable appropriate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is carried out on such blanks before they could be properly used as tool bits. In this letter the respondents pointed out that the product manufactured by them was identical to the product of M/s. Indian Tools Manufacturers Ltd. They had subsequently given to the Assistant Collector a copy of the said order of the Appellate Collector as also certain declarations from firms which were purchasing the subject goods from them, such declarations making it clear that after such purchase the goods were being subjected to further processes (of the nature mentioned earlier) before they could be put to actual use. This is seen from the letter of the respondents, dated 31-8-1981. It also appears that the respondents had enclosed samples of the subject ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Collector rejects the averment of the respondents on the ground that such further processes will be in the nature of minor processes only and hence even without such processing the goods would be covered under TI 51-A(iii) CET. 6. With reference to the order of the Appellate Collector, dated 22-7-1981 the Assistant Collector has noted the exact circumstances, propriety and chances of the decision holding the field are not comprehensible at this stage. It is, therefore, necessary to decide the matter on its own merits . As we have already seen, a copy of the Appellate Collector s order had been sent by the respondents to the Assistant Collector along with their letter, dated 31-8-1981. It is not clear to us whether this letter was receiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng, edging etc. before they could be again put to use, the blanks also would be tool bits though they may require such processes before they are put to use. It does not appear to us that the analogy is appropriate. Once the goods have assumed a particular shape and character, and, because of the same, are to be classified under a particular head the fact that after use for a particular period they may have to be repaired would not take them outside the classification. But in the present case, the blanks had not attained the shape or character of the bits and therefore it would not be proper to infer that even before they attain the said shape and character (by being subjected to the relevant processes) they would still be tool bits. It is n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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