Collector of Central Excise, Madras Vs. Coimbatore Pioneer Fertilizers Ltd.
EmailAppeal: Civil Appeals Nos. 10013-15 of 1983
Petitioner: Collector of Central Excise, Madras
Respondent: Coimbatore Pioneer Fertilizers Ltd.
Apeal: Civil Appeals Nos. 10013-15 of 1983
Judges: J.S. VERMA,C.J. & B.N. KIRPAL, J.
Date of Judgment: Jul 24, 1997
Head Note:
EXCISE
Central Excise and Salt Act, 1944
Schedule, Entry 14 – HH Manufacturing process – Pulverisation of rock – phosphate – If amounts to “manufacturing process”, exigi-ble to excise duty. Held that it was not “manufacturing process” and no duty is leviable. Decision in Hyderabad Industries Ltd.’s case (78 ELT 641) followed. Decision in Pyrites Phosphates (13 ELT 1192) disapproved. (para 2)
Cases Reffered:
1.Pyrites Phosphates & Chemicals Ltd. v. CCE((1983) 13 ELT 1192 (CEGAT)) (Para 2)
2.Hyderabad Industries Ltd. v. Union of India JT 1995 (5) 594. (Para 2)
JUDGEMENT:
O R D E R
1. The only question for decision in these appeals is, whether pulverisation of rock phosphate amounts to a process of manufac-ture so as to make it exigible to duty in terms of Entry No. 14-HH of the Schedule to the Central Excise and Salt Act, 1944. The Tribunal has held that it is not a process of manufacture and, therefore, no duty is leviable. The Department has come up in appeal against the Tribunal’s decision.
2. Learned counsel for the appellant referred to another deci-sion of the Tribunal reported in Pyrites Phosphates & Chemicals Ltd. v. CCE((1983) 13 ELT 1192 (CEGAT)) taking the opposite view. The reasoning of that decisions is contained in para 19 of the judgment. In support of the view taken in Pyrites Phosphates((1983) 13 ELT 1192 (CEGAT) reliance was placed by the Tribunal on the decision of the Delhi High Court in Hyderabad Asbestos Cement Products Ltd. v. Union of India((1980) 6 ELT 735 (Del)), which decision of the Delhi High Court has been reversed by this Court in Hyderabad Industries Ltd. v. Union of India JT 1995 (5) 594. The view taken by the Tribunal in Pyrites Phosphates((1983) 13 ELT 1192 (CEGAT)) is, therefore, untenable.
1. The only question for decision in these appeals is, whether pulverisation of rock phosphate amounts to a process of manufac-ture so as to make it exigible to duty in terms of Entry No. 14-HH of the Schedule to the Central Excise and Salt Act, 1944. The Tribunal has held that it is not a process of manufacture and, therefore, no duty is leviable. The Department has come up in appeal against the Tribunal’s decision.
2. Learned counsel for the appellant referred to another deci-sion of the Tribunal reported in Pyrites Phosphates & Chemicals Ltd. v. CCE((1983) 13 ELT 1192 (CEGAT)) taking the opposite view. The reasoning of that decisions is contained in para 19 of the judgment. In support of the view taken in Pyrites Phosphates((1983) 13 ELT 1192 (CEGAT) reliance was placed by the Tribunal on the decision of the Delhi High Court in Hyderabad Asbestos Cement Products Ltd. v. Union of India((1980) 6 ELT 735 (Del)), which decision of the Delhi High Court has been reversed by this Court in Hyderabad Industries Ltd. v. Union of India JT 1995 (5) 594. The view taken by the Tribunal in Pyrites Phosphates((1983) 13 ELT 1192 (CEGAT)) is, therefore, untenable.
