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SUPREME COURT OF INDIA
COLLECTOR OF central EXCISE, Madras
Vs.
COIMBATORE PIONEER FERTILIZERS Limited
Decided on July 24, 1997
manufacture - rock phosphate - Pulverisation of rock phosphate is not considered a process of manufacture for the purpose of duty under Entry No. 14-HH of the Schedule to the Central Excises and Salt Act, 1944.
Fact of the Case:
The only question for decision is whether pulverisation of rock phosphate amounts to a process of manufacture for duty under Entry No. 14-HH of the Schedule to the Central Excises and Salt Act, 1944.
Finding of the Court:
The tribunal held that pulverisation of rock phosphate is not a process of manufacture and, therefore, no duty is leviable. The Department appealed against this decision. The court found no ground to differ from the tribunal's view and dismissed the appeals.
Issues: The main issue was whether pulverisation of rock phosphate constitutes a process of manufacture for the purpose of duty under the Central Excises and Salt Act, 1944.
Ratio Decidendi: The court relied on previous decisions and held that pulverisation of rock phosphate does not amount to a process of manufacture for the purpose of duty.
Final Decision: The appeals were dismissed, affirming the tribunal's decision that pulverisation of rock phosphate is not considered a process of manufacture for duty purposes.
( 1 ). The only question for decision in these appeals is whether pulverisation of rock phosphate amounts to a process of manufacture so as to make it exigible to duty in terms of Entry No. 14-HH of the Schedule to the central Excises 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 tribunals decision.
( 2 ). Learned counsel for the appellant referred to another decision of the tribunal reported in Pyrites Phosphates and Chemicals Ltd. v. CCE taking the opposite view. The reasoning of that decision is contained in para 19 of the judgment. In support of the view taken in Pyrites Phosphates reliance was placed by the tribunal on the decision of the Delhi High court in hyderabad Asbestos Cement Products Ltd. v. Union of India which decision of the Delhi High court has been reversed by this court in Hyderabad industries Ltd. v. Union of India. The view taken by the tribunal in Pyrites phosphates is, therefore, untenable.
( 3 ). We find no ground to differ from the view taken by the tribunal in the present case.
( 4 ). THE appeals are, therefore, dismissed.
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