PANCHMAHAL CEMENT COMPANY LTD. Vs. CC & CE

JUDGEMENT

(1.) The issue to be decided in this appeal is whether the activity of crushing/grinding/powdering of limestone used for the manufacture of cement clinker by the appellant, who are cement manufacturer, amounts to manufacture. None appears for the appellants in spite of notice. Hence we heard the learned DR and perused records.

(2.) We find that in the case of Divisional Deputy Commissioner of Sales Tax v/s. Bherhaghat Mineral Industries, 2000 (119) ELT 271 (SC) the apex Court has held that the crushing of dolomite lumps into chips and powder is not a process of manufacture that brings about a new commercial commodity. We also note that the Tribunal's decision reported in : 1991 (54) ELT 414 Steel Authority of India Ltd. v/s. CCE, wherein it is held that crushing of limestone into lime fine does not amount to manufacture, has been upheld by the apex Court by its dismissal of the Revenue's appeal as seen from, 1997 (9) ELT A160. The Tribunal has considered Sec. 2(f) and Note (2) to Chapter 25 of the Central Excise Tariff Act, 1985 while arriving at its conclusion. Following the ratio of the above orders we hold that the activity carried out by the appellants of crushing/grinding/powdering of limestone during the period in dispute does not amount to manufacture so as to give rise to any duty liability. We therefore set aside the impugned order confirming the duty demand and imposing penalty, and allow the appeal.