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TMI Blog1988 (10) TMI 143X X X X Extracts X X X X X X X X Extracts X X X X ..... es not amount to manufacture within the meaning of the definition of manufacture in Section 2(f) of the Central Excises and Salt Act, 1944. It is submitted that the coating of the steel wire is done merely for the purpose of preventing the said steel wire from deteriorating in quality. The said process does not in any way change the name, character or use of the steel wire which establishes that there is no manufactures involved as it is settled that unless by a process the name, character or use of an article is changed there is no "manufacture" within the meaning of the aforesaid Section 2(f) involved. The Bombay High Court in its judgment in the case of Shakti Insulated Wires Pvt. Ltd. and Ors. v. Union of India and Ors. has held that in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... labour and would not be the manufacture. It has been held that in the above case the supplier of raw material would be the manufacturer i.e. IDL Chemicals Ltd. would the manufacturer and would accordingly be liable to pay excise duty. The above proposition has also been accepted by the Hon'ble Supreme Court in the case of Shree Agency v. S.K. Bhattacharjee & Ors. where the Hon'ble Supreme Court has held that the supplier of raw material who merely paid job work charges for getting the yarn wover would be the actual manufacturer and not the weaver." The applicants have stated that the issue which was before the Collector for adjudication related to their eligibility to exemption of duty under Notification No. 176/77-C.E., dated 18-6-1977. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acture undertaken by the applicants, have been stated in the relevant show cause notice and also the order-in-original passed by the Collector. It is stated therein that M/s. Cable House are engaged in the manufacture of PVC coated galvanised steel wires falling under Tariff Item 68 of the CET. The galvanised PVC coated steel wires are used in the manufacture of explosives by M/s. IDL Chemicals Ltd., Hyderabad. All the raw materials, viz., steel wires and PVC granules, required for the manufacture of PVC coated steel wires are supplied by M/s. IDL Chemicals Ltd., Hyderabad for whom the appellant Company had undertaken the said manufacture on a job work basis. The process of manufacture involved is that the galvanised steel wire is passed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... even though it was not put forward either in the High Court or before the Labour Court, as it was a pure question of law which could be decided on the basis of facts on record in the case. Shri Haksar has also argued that on merits, the applicants have a strong case in their favour, as in the case of Shakti Insulated Wires Pvt. Ltd. and Others v. Union of India and Others, reported in 1982 ELT 10 (Bombay), the Hon'ble Bombay High Court held that insulation of bare copper strips did not amount to manufacture under Section 2(f) of the Central Excises and Salt Act since mere application of such special process or giving it a different name could not make it a different or distinct article than the original article, viz. copper strips. 3.&emsp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter expressly or impliedly decided by the Appellate Assistant Commissioner. The Hon'ble High Court held that the Tribunal was right in holding that it had no jurisdiction to allow the assessee to raise the grounds in respect of the claim for deduction of legal expenses. Madhya Pradesh High Court, in the above case, followed the judgment of Gujarat High Court and quoted the observations of Hon'ble Gujarat High Court in the case of C.I.T. v. Steel Cast Corporation, reported in 1977 (107) ITR 683 (Guj.) at page 700. The Hon'ble Gujarat High Court observed that the jurisdiction of the Tribunal was restricted to the subject-matter of the appeal. Once the subject matter of the appeal was determined, the Tribunal had very wide powers to deal w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which the Appellate Tribunal can function and can exercise its jurisdiction but it must be emphasised that the jurisdiction of the Tribunal which is restricted to the subject-matter of the appeal must not be confused with the powers of the Tribunal to deal with an appeal within the four corners of its jurisdiction." 5. We have considered the arguments of the learned advocate and the learned departmental representative. We observe that the process of manufacture has been described in the show cause notice and the same has also been briefly stated in the order-in-original passed by the Collector. We are, therefore, of the view that no further investigations are prima-facie necessary to decide the question whether the process undertaken ..... X X X X Extracts X X X X X X X X Extracts X X X X
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