TMI Blog2007 (5) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Excise Duty is chargeable thereon? 2. The facts of the case are that M/s. Mahavir Aluminium Ltd., Bhiwadi (hereinafter referred to as 'the Assessee') was engaged in the manufacture of Aluminium Products falling under Chapter 76 of the Central Excise Tariff Act, 1985. The assessee was manufacturing Aluminium Billets an4 was consuming it captively for the manufacture of Aluminium Irrigation Pipes exempted from payment of duty. The assessee was also selling the said commodity in the market by paying Excise Duty 3. It was the case of the Commissioner of Central Excise, Jaipur (hereinafter referred to as 'the Revenue') that the assessee did not mention the facts in classification lists/declarations filed under Rule 173B of the Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lets, besides being used captively, were also sold in the marked by the assessee on payment of duty @ 15% adv." 7. The Commissioner concluded : "Regarding whether aluminium billets produced at the intermediate stage by the assessee as per the process discussed in para A supra amounts to manufacture. I find that a billet as different article emerged as a result of melting of ingots/scrap of aluminium and other alloying metals and is having distinct name, character or use and as per Section 3 of Central Excise Act, 1944 these are goods which can ordinarily be bought and sold in the market. The assessee is also selling the same in the market apart from captive consumption for manufacture of irrigation aluminium pipes. Thus, billet is altoget ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the form was changed and as such there was no 'manufacture' and Excise Duty could not be imposed by the Department. 12. The learned counsel for the assessee, on the other hand, submitted that CEGAT was right in holding that there was no change of commodity and hence there was no 'manufacture', Extrusion Ingots which are also known as Round Ingots or Billets are only a different form of the same taxable commodity, namely, Wrought Aluminium under Chapter 7601. The process or conversion of Melting Ingots into Extrusion Ingots was not a 'process of manufacture' and there is a change in shape or form of the product. The order of CEGAT, hence, calls for no interference. 13. Having heard the learned counsel for the parties, in our opinion, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cesses, 'manufacture' takes place and liability to excise duty under Section 4 is attracted. 16. In Union Carbide India Ltd. v. Union of India & Org., 1(1986) 2 SCC 547, this Court held that in order to attract Excise Duty, the article manufactured must be capable of sale to a consumer. To become goods, an article must be something which can ordinarily come to the market to be bought and be sold. 17. In Union of India & Ors. v. J.G. Class Industries Ltd. & Ors,, 2(1998) 2 SCC. 32, leading decisions came to be considered by this court and it was held that a two fold test emerged for deciding whether the process is that of 'manufacture' 18. The Court after considering earlier decisions, stated: "On an analysis of the aforesaid rulings, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sp; Sub-Heading No. Description of Goods Rate of Duty 76.01 7601.10 ingots, billets 16% 21. Ingots and Billets are thus two different commercial commodities. They have separate, distinct and identifiable marketability and saleability. The assessee, no doubt, used Aluminium Billets captively but is also selling in open market. We are, therefore, of the view that the Commissioner was right in holding that the assessee was liable to pay Excise Duty and CEGAT was wrong in interfering with the order-in-original. The order of the CEGAT, therefore, is liable to be set aside. 22. For the foregoing reasons, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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