JUDGMENT

S.N. Variava, J.-This Appeal is against the Judgment dated 31st December, 1997 passed by the Customs, Excise & Gold (Control) Appellate Tribunal, New Delhi (for short CEGAT).

2. Briefly stated the facts are as follows :

The Appellants carry on the business of fixing rubber linings on pipes, tanks and other such articles. The articles were supplied to them by their customers. They fixed the lining and returned the articles. They were issued a show-cause-notice claiming that they were manufacturing dutiable goods and that they were not declaring the correct value inasmuch as the value of the articles supplied to them and the packing, forwarding charges and rubber lining charges had not been included in the assessable value. The Appellants reply was accepted and the Assistant Collector dropped the show-cause notice.

3. The Department preferred an Appeal to the Collector (Appeals). The Appeal was allowed by the Collector (Appeals). The Appellants filed an Appeal to CEGAT which has been dismissed by the impugned order.

4. The question for consideration is whether a new and marketable product having a distinct name, character and use could be said to have come into existence as a re