ORDER :

1. Leave granted in SLP (C) No. 5819 of 2007.

2. These two appeals are filed challenging the judgments of the High Court of Rajasthan whereby the excise duty and penalty which was paid by the respondents herein have been quashed.

3. The proceedings arise out of Show Cause Notices issued to the respondents on the ground that cutting of marble blocks into marble slabs and tiles amounted to the manufacturing activity but the respondents were not paying excise duty thereon. The Order-in-Original was passed confirming the demand made in the Show Cause Notices. This order was upheld by the Tribunal as well. The matter was not taken further by the respondents and thus, it attained finality. Not only that, on that basis, amount of excise duty and penalty was recovered from the respondents after the proceedings were over some time in February, 2001.

4. It so happened that identical issue was taken up by some other assessee contending that the cutting of marble blocks into marble slabs and tiles did not amount to manufacture within the meaning of Section 2(f) of the Central Excise Act, 1944, and therefore, no excise duty was payable. That dispute landed up in this Court and was finally d