9911796707
TMI Blog2001 (9) TMI 417X X X X Extracts X X X X X X X X Extracts X X X X ..... ty also ordered the confiscation of Land Building under Rule 173Q of Central Excise Rules and gave option to redeem the same on payment of fine of Rs. 30,000/-. 2. Brief facts of the case are that appellants are engaged in the manufacture of Special Brazed Carbide Tipped Tools. They were also procuring the duty paid unground tool tips and after grinding they were clearing the same and were availing the benefit of Board s Circular dated 3-8-1973. The Circular provides that the grinding of duty paid unground tool tips by the user in their own factory before mounting them on to tools are not excisable. 3. A show cause notice was issued to the appellants on the ground that appellants were not entitled for the benefit of the Circular dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Silicon Carbide Wheel and Diamond Wheel. His submission is that unground tool tips cannot be put to as such use before grinding. Therefore, the process undertaken by the appellants brings out new and different article. Therefore, the process undertaken by the appellants amounts to manufacture. 6. In respect of limitation, his submission is that the appellants never declared in his classification list that they were clearing the unground tool tips for home consumption. He, therefore, submits that the appeal be dismissed. 7. Heard both sides. 8. In this case the issue is whether grinding of unground tool tips amounts to manufacture. The product literature produced by the appellants explains the process of grinding as follows : A s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ps by the purchasers (actual users/tool makers) in their own factories before mounting them on to tools. It may be stated that once duty has been paid on unground tips, the question of recovery of further duty, on grinding of such tool tips would not arise. 10. The Circular provides that grinding of unground tool tips by the actual user/tool makers in their own factory before mounting them to the tools does not attract the excise duty. 11. In the present case the admitted facts are that the appellants are clearing the tool tips after grinding for the home consumption. The appellants admitted that they were not actual users of tool tips in question. Therefore, the appellants are not entitled for the benefit of this Circular in respect o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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