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TMI Blog2008 (6) TMI 584X X X X Extracts X X X X X X X X Extracts X X X X ..... nsmission towers as per the contract entered into electricity board and others and also engaged in erection of electric power transmission towers. They stated that mere cutting to size, drilling holes and galvanizing of duty paid MS angles and MS plates do not amount to manufacture. The Commissioner has examined the issue threadbare and has examined large number of judgements to uphold the assessee's plea that such an activity does not amount to a process of manufacture as no new article bearing a different name use or character has arisen. This is under challenge. 2. Learned SDR submitted that the Commissioner's order is required to be set aside and appeal is to be allowed while learned counsel filed written submissions. He also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le and excisable. The lower authority held that the items cleared by the Respondents are parts of structures and their tariff heading 7308.90 and therefore, held that they are liable for Excise duty. Therefore the confirmed that the duty already paid under protest. However, the Respondents approached the Commissioner (Appeals) and the Commissioner (Appeals) relying on various judicial decisions came to the conclusion that the parts fabricated by the Respondents, namely MS angles, MS rods, MS plates are not dutiable. Revenue is aggrieved over the impugned order of the Commissioner (Appeals). Therefore they have come before the Tribunal for relief. 3. In the 'Grounds of Appeal' by the Revenue, it has been stated that the Hon'bl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ii) Crane Betel Nut Powder Works vs. CCE, Tirupati [2007 (210) ELT 171 (S.C.)] (iii) CIT Kerala vs. Tara Agencies [2007 (214) ELT 491 (S.C.)] In the light of the above, it was urged that mere cutting of MS plates, angles, channels and joists, punching holes and galvanization does not transform the subject goods into a new and different product with a distinctive name, character and use. The learned Advocate also relied on the following case laws:- (i) CCE Pune vs. Teleco [2006 (202) ELT 812 (T) (ii) OIO No. 18/2005 dated 19.08.2005 passed by CCE Hyderabad - III, Commissionerate (iii) T.A. No. 19/2004 dated 25.11.2005 of AP Sales Tax Appellate Tribunal (iv) Karnataka Electricity Board vs. CCE [2003 (158) ELT 585 (T) (v) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an article distinct from angles, sheets, tubes etc. used in it. Mere drilling holes or mere cutting jobs in isolation may not by themselves involve manufacture of an article, but, converting raw material like angles, tubes, plates etc. to bring about a distinct commodity will surely amount to manufacture . 4. On a very careful consideration of the issue, we find that the Respondents received duty paid MS angles, rods, channels, plates, etc. and the activity carried out by them amounts merely to drilling of holes and cutting them and these are sent to the various parties for manufacture of towers. In our view, the process undertaken by the Respondents do not amount to manufacture as the MS rods, plates, angles, etc. remain the same even ..... X X X X Extracts X X X X X X X X Extracts X X X X
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