THE COMMISSIONER OF CENTRAL EXCISE, 143, NEW BARADWARI, JAMSHEDPUR 831001 Vs. M/S. CASTIINGS (INDIA) INC., PLOT NO. 29, IVTH PHASE, ADITYAPUR INDUSTRIAL AREA, GAMHARIA, JAMSHEDPUR

JUDGEMENT

(1.) These Tax Appeals have been preferred against a common judgment and order No. A-720-722/KOL/2006 dated 27th July, 2006/31st July, 2006 passed by the Customs, Excise and Service Tax Appellate Tribunal (hereinafter to be referred to as 'CESTAT') in Appeal Nos. EDM- 01-03 of 2005 East Regional Bench, Kolkata which is the impugned order, whereby the appeals preferred by the respondents were allowed and order-in-original no. 9- 14/Commissioner/2005 passed by the Commissioner, Central Excise, Jamshedpur dated 29th September,2005 was quashed and set-aside. Being aggrieved and dissatisfied by the order passed by the CESTAT, the present Tax Appeals have been preferred by the department raising following substantial questions of law:

(2.) Learned counsel for the appellant has submitted that in the facts of the present case, TMT coil has been processed further by Castings (India) INC.-respondent no.1 and the same is converted into brand name of 'TISCON' TMT Bars. This manufactured item is classifiable under Sub-Heading No. 7214.90 of the Schedule to the Central Excise Tariff Act, 1985. TMT coil is falling within Sub-Heading No. 7213.90 of the Act, 1985. The activities undergone for conversion of TMT coils into TMT bars are de-coiling, straightening and cutting into desirable sizes with the help of energy and it converts TMT coils into TMT bars which are absolutely new, distinct and identifiable products. The TMT bar is a distinct commercial commodity which is a marketable commodity having even a value addition. In common parlance, persons of the same trade are also giving different name to this commodity i.e. TMT bars. Thus, there is manufacture of TMT bars from TMT coils. The total manufacturing process has been mentioned in the show-cause notices dated 7th May,2003, 30th May, 2003, 9th July, 2003, 16th March, 2004, 18th Oct., 2004 and 25th Feb., 2005, issued by the appellant to the respondents. Ad valorem duty at the rate of 16% has been prescribed under the Central Excise Tariff Act,1985 as leviable and, hence, there will be huge difference in the duty because there is substantial value addition on such TMT bars. Learned counsel for the appellant relied upon the following decisions:

(3.) Learned counsel for the respondents has submitted that conversion of TMT coils into TMT bars and TMT rods is not manufacturing at all, even if, these two items are mentioned under different Sub-Headings of the Central Excise Tariff Act, 1985. It is further submitted that commercially no new article has been manufactured, even if, TMT coils has undergone some processes. It has further been submitted by counsel for the respondents, that in fact, there is no difference between TMT coils and TMT bars and rods. TMT coils are coiled for easy transportation etc. and nothing beyond that. For conversion of TMT coils into TMT bars and rods, the only processes undergone are: