VARDHMAN INDUSTRIES LTD. Vs. CCE

JUDGEMENT

(1.) THE Appellant has filed this appeal against the Order -in -Appeal passed by the Commissioner (Appeals). In the impugned Order the Commissioner (Appeals) held that the process of corrugation of galvanized sheet of iron and steel amounts to manufacture and the corrugated sheets are liable to Central Excise duty. Learned Counsel appearing on behalf of the Appellants submitted that the process of corrugation does not amount to manufacture. For this, he relied upon the following decisions of Hon'ble High Courts: - -

(2.) LEARNED SDR, Shri R.D. Negi, appearing on behalf of the Revenue, submitted that the issue involved in this appeal is covered by the decision in the matter of Hansa Mettalic Ltd. v. UOI, 2001 (133) ELT 543 (P&H). His submission is that Hon'ble High Court after taking into consideration the definition of manufacture under Section 2(f) of the Central Excise Act held that the process of corrugation of metallic sheets and galvanized sheets amounts to manufacture. He also relied upon the decision of the Tribunal in the case of Sidhartha Tubes Ltd. v. CCE. Final Order No. 557 -558/2001 -B dated 19.12.2001 whereby the Tribunal held that corrugation of C.R. Coils amounts to manufacture and liable to Central Excise duty. Heard both the sides. In this case the issue is whether the process of corrugation amounts to manufacture under Central Excise Act. The Appellants relied upon the various decisions of Hon'ble High Courts whereby while interpreting the entries of Sales Tax the Hon'ble High Court held that iron & steel sheets even after corrugation remains iron & steel. The Hon'ble J & K High Court in the case of Sales Tax Commissioner v. Jammu Iron & Steel Syndicate (supra) after taking into consideration the earlier decision in the case of Commissioner of Sales Tax v. TISCO & State of Andhra Pradesh v. Sri Durga Hardware Stores (supra) held that corrugation do not change the essential character of iron and steel and they still remain iron and steel. Similar view was taken in the case of State of Gujarat v. Shah Veljibhai Motichand by Hon'ble Gujarat High Court. After considering, the decisions of the Hon'ble High Court in the case of Sales Tax Commissioner v. Jammu Iron & Steel Syndicate and in the case of State of Andhra Gujarat (sic) v. Shah Veljibhai Motichand, Hon'ble High Court of Punjab & Haryana in the case of Hansa Metallic Ltd., reported in : 2001 (133) ELT 543 held that the process of corrugation of plain metallic sheets and galvanized sheets amounts to manufacture as a new commercial product having different identity and use have come into existence. Similar view is taken by the Tribunal in the case of Sidhartha Tubes Ltd. relied upon by the Revenue. In view of the decision of Punjab & Haryana High Court and the decision of the Tribunal we find no infirmity in the impugned Order.