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TMI Blog2019 (10) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... ts as far as the merits of the case are concerned - the activity of the appellant in cutting, etc., of aluminium composite panels for the purpose of cladding amounts to manufacture. Time Limitation - HELD THAT:- The appellants have a fair case in terms of limitation. As submitted by the appellants, the appellants have given a letter to the department as back as 1.4.2003/04 informing the department about their activity undertaken in respect of ACPs; they have been regularly filing ER-3 returns and they have furnished the figures relating to the value of clearances of ACPS vide letters dated 6.1.2005 and 11.4.2005. We find reasons to believe that it is because of a bona fide belief the appellants held, they did not submit the figures relat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned counsel for the appellant submits that they are not manufacturing any new product. They are only cutting the already manufactured aluminium composite panels into the required sizes as per the requirement at the work sites. ACP is a composite product of aluminium and polythene sheets; aluminium sheet of 0.5mm is placed on both sides of the polythene sheet; such sheets are used in buildings as a covering or cladding; these panels normally come in the size of four feet by six feet; they are cut into smaller sizes of various shapes and cleared to site, as such; no new product is emerging and therefore, the process undertaken by them does not amount to manufacture in view of Hon ble Supreme Court decision in the case of Delhi Cloth and Oil M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red in the case of M/s. Hubli Electricity Supply Company Ltd. and KEB (supra), it is clear that mere process of cutting and routing (i.e. cutting the grooves) does not bring into existence new products. The Tribunal in the case of AGV Alfab Limited (supra) have also held that mere cutting of aluminium angles, plates to size, drilling holes, etc., would not bring into existence new product. The above cited ratios clearly apply to the facts of the present case. As the Revenue has not discharged their burden of marketability of the item as a separate goods, therefore, in the light of the cited judgment, it has to be held that the impugned order is not legal and proper. The same is set aside by allowing the appeal with consequential relief, if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en using to suit the particular requirement. That mere cutting sheets to size, drilling, grooving, welding, fastening etc. is not manufacture when the original identity of the product is not lost. In several other cases it was held that cutting to size, welding steel plate to make Steel Band which is a product with distinct name and character is manufacture‟. The goods in the instant case cannot be equated with the aluminium sheets in running length used for manufacturing the aluminium composite panels. In view of the foregoing, we are of the view that cutting, grooving of the Aluminium sheet to make Aluminium composite panels amounts to manufacture of a distinct product commercially known as different. Therefore, we find that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e merits of the case are concerned. We hold that the activity of the appellant in cutting, etc., of aluminium composite panels for the purpose of cladding amounts to manufacture. However, we find that the appellants have a fair case in terms of limitation. As submitted by the appellants, the appellants have given a letter to the department as back as 1.4.2003/04 informing the department about their activity undertaken in respect of ACPs; they have been regularly filing ER-3 returns and they have furnished the figures relating to the value of clearances of ACPS vide letters dated 6.1.2005 and 11.4.2005. We find reasons to believe that it is because of a bona fide belief the appellants held, they did not submit the figures relating to the cle ..... X X X X Extracts X X X X X X X X Extracts X X X X
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