1994 (5) TMI 87

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..... manufacturing process. Therefore, at that stage itself they become the final as well as the finished product. But cutting standard sized block of 900 mm X 600 mm into smaller sizes whenever required by any particular customer neither the identity nor the stage of finish of the manufactured product gets changed. It is a well settled law that by merely cutting a fully manufactured product into smaller sizes, the nature of the product does not change. Irrespect of the size these are purchased sold and known in the concerned trade as thermal insulation blocks. The appellants are also admittedly entering the product in RG I register on completion of the manufacture itself. If their view has to be accepted, it would mean that further manufacturi .....

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..... sistant Collector held that the manufacture of refractories is complete as soon as they obtained slabs and blocks of standard sizes and that all the operations beyond this stage are optional and cannot be treated as a part of the manufacturing process. It was also held by the Assistant Collector that Rule 57D of the Central Excise Rules, 1944 only makes provisions for the wastages arising during the course of manufacture of the product and not in operation subsequent to the manufacture and therefore the Assistant Collector held that Modvat credit was not available to the appellant on the breakages and wastages. 3. Shri A. Lal, the ld. Consultant appearing for the appellant submitted that the Hon ble Supreme Court in a number of cases had .....

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..... when they were entered in the RG-I register; that any process of cutting or conversion of fully manufactured goods does not amount to the process of manufacture; that the goods were fully marketable when they were of standard size and slabs. Reiterating the findings of the lower authorities, the ld. JDR submitted that the lower authorities had examined these issues meticulously and had come to the correct decision. 5. Heard the submissions of both sides and considered them. The only short dispute is whether cutting blocks of Thermal Insulation material into smaller size to make them marketable or according to the specifications of the buyer amounts to manufacture or not. There are a number of judgments of the Hon ble Supreme Court that m .....

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