9911796707
TMI Blog1984 (3) TMI 394X X X X Extracts X X X X X X X X Extracts X X X X ..... iental Talc. Products Pvt. Ltd. (hereinafter called the appellants) have two units- one at. Banswara and another at Udaipur (Rajasthan). Their main business is to grind 'soap stone' into powder known as 'soap stone powder' in their mills - "Three Roller Raymond Grinding Mills" and to sell the same to be used as ''filler" in various industries such as paper, textile, paints, ceramics, plastics, etc. Power is used for the purpose of grinding. 3. For their unit at Banswara, the appellants had not obtained any excise licence, nor paid any excise duty on the goods cleared by them from that unit and as such the Central Excise (Preventive) Party, Udaipur visited the factory premises of the appellants at Banswara on 22-6-1979. Examinatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e under the impression that liability of duty was not attracted due to the exemption Notification No. 176/77, dated 18-6-1976 because the value of the excisable goods cleared from their Udaipur and Banswara factories taken together did not exceed the limit of R s. 30 lakhs in the year 1976-77. 5. Collector of Central Excise, Jaipur did not accept the contentions of the appellants and by his order No. 16/80-CE issued under C. No. V(68) 15/2/79/34896 dated 28-11-1980 confirmed the demand of ₹ 39,462.61 under Rule 10 of the Central Excise Rules, 1944 and a penalty of ₹ 5,000 was also imposed upon the appellants, under Rule 173Q of the Central Excise Rules. 6. In appeal before the Central Board of Excise and Customs, New ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mething which can ordinarily come into the market to be bought and sold, and further that mere process is not manufacture. This was reiterated in South Bihar Sugar Mills Ltd. and Another v. Union of India and Others (AIR 1968 SC 922). Applying these principles of law to the facts of the present case before us, grinding of 'soap stone' into 'soap stone powder' of required mesh amounts to manufacturing process as defined under Section 2(f) of the Central Excises and Salt Act, 1944. Before Special Bench 'D' of this Tribunal in the case of Pyrites and Phosphate Chemicals Ltd. v. Collector of Central Excise, Delhi (1983 E.L.T. 1192), a question cropped up whether breaking of the rocks into small pieces and then powdering them and then sieving th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d is bought and sold in the market as such and, therefore, by this process of converting the soap stone into soap stone powder of specified mesh amounts to process of manufacture and the authority below has correctly held it to be so. The authority below has held this product to be liable to excise duty under Tariff Item 68 and not under Tariff item 14F as talc. powder. To make it such a talc. powder, some more process has to be employed. We do not find any irregularity in the findings of the authority below on this point. 12. The submission of the learned Counsel of the appellants as alleged in the grounds of appeal that this commodity mined, powdered and sold as soap stone of the filler variety is exempt under Notification Nos. 23/5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etermine their eligibility of exemption granted under Notification No. 176/77-CE dated 18-6-1977. This contention of the appellants is not sustainable. There is no provision in Notification No. 176/77-CE, dated 18-6-1977 to take into account only the job charges to determine the total turnover. It is the total turnover which is to be taken into account for the purpose of taking the benefit of Notification No. 176/77-CE, dated 18-6-1977. Notification No. 119/75, dated 30-4-1975 is only in respect of exemption of duty and it cannot he made available for the purpose of determining the total turnover in terms of Notification No. 176/77-CE, dated 18-6-1977. Admittedly, the total turnover was more than 30 lakhs from both the units of the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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