JUDGMENT

R.M. SAHAI, J.- The question of law that arises for consideration in this appeal is whether the tube mill and welding head erected and installed by the appellant for manufacture of tubes and pipes out of duty-paid raw material was assessable to duty under residuary Tariff Item No. 68 of the Schedule being excisable goods within the meaning of Central Excises and Salt Act, 1944 (Act for short).

2. To answer the issue, few facts are necessary to be narrated. The appellant was engaged in the manufacture of welded steel pipes and tubes which were classified before 1-8-1983 under Item 28-AA of the First Schedule to the Act. Later on these items came to fall under Tariff Item 25 of the Schedule. The steel tubes and pipes produced by the appellant were exempt from duty as they were produced out of duty-paid raw material. For the manufacture of these items the appellant had set up plant and machinery at its factory site. The first phase of installation was completed in the year 1974 by putting up all processes of tube-making such as slitting line, tube-rolling plant, welding plant, testing equipment and galvanizing etc. The tubes which could be rolled were in the size range of 15 m