MARUTI TRANSPORT AND ORS. Vs. CCE

JUDGEMENT

(1.) THE issue involved in all these appeals is identical and as such, they are being disposed off by a common order.

(2.) DUTIES have been confirmed and penalties imposed upon various persons on the ground that they are engaged in the activity of decoiling, straightening and cutting Rebar Coils obtained from the manufacturers of the same, into Rebar bars and clearing the same without payment of duty of excise and without observing other excise formalities. The Revenue's contention is that such activity undertaken by the appellant amounts to manufacture and such bars obtained from the coils are classifiable as 'other Bars and Non Alloy Steel' falling under chapter sub heading No. 7214.90 of the Central Excise Tariff Act, 1985.

(3.) IT is seen that the said circular of the Board was challenged before the Delhi High Court by way of a Writ Petition. The Hon'ble Tribunal in their judgment reported as Faridabad Iron and Steel Traders Association v. UOI, 2004 (178) ELT 1099(Del.)has held that the process of cutting or slitting of steel sheets in coil form to specific sizes does not amounts to 'manufacture'. As a result of the finding, the Hon'ble High Court set aside the Boards Circular No. -CX dated 7.9.2001. For better appreciation of the said decision, we reproduce the relevant paragraphs: