I.J. Rao, Member (T)

1. The appellant company was fabricating columns, purlins, bracings, rafters and other items required for erection. The fabrication was out of duty paid iron and steel products such as plates, angles etc. by subjecting them to the process of cutting, welding revetting etc. The Assistant Collector held that the process of conversion of iron and steel products into columns etc. amounted to a process of manufacture since the resultant goods had a distinct name, character and use, different from the raw materials. The full details of the matter were very well recorded by the Assistant Collector in his order. The following portion of his order is reproduced in view of its detail :-

"The raw materials used in fabrication are standard profiles and plates as supplied by rolling mills of Steel Plants i.e. joists, channels, angles and plates of various sizes, length and thickness as required. The fabrication of steel structure generally involves the following processes. They are partly/wholly completed at their factory and the balance operations are completed at the site.

(i) Templating.

(ii) Cutting to size by guillotine or oxy-planer.

(iii) Drilling of holes.

(iv) Assembly.

(v) Welding.

(vi) Bending if required.

(vii) Painting and Marketing.

The processes normally left for completion at site of erection are :-

(i) Further assembly.

(ii) Welding/bolting.

(iii) Erecting in position.

(iv) Bolting/Welding in position.

(v) Final painting.

The structural members manufactured in factory are broadly named as following in order to facilitate identification at the time of final assembly at site:-

(i) Columns.

(ii) Beams.

(iii) Bracings.

(iv) Purlins.

(v) Rafters, ties and scantlings, structs for roof trusses, girders trusses, roof girders etc.

(vi) Crane girders/gantry girders.

(vii) Other members.

After the semi-manufactured materials are despatched to sites, they are assembled and erected as per the markings shown on drawings in sequences and other operations listed above are completed."

2. The Assistant Collector in the very detailed order came to the conclusion that manufacture was involved. Among other reasons he recorded the following :-

"In order to examine the exact nature of work carried out by the company in their factory, I propose to go through some of the contracts in respect of fabrication of steel structurals and their erection undertaken by the company alongwith the work specification. On going through the contract in respect of fabrication of steel structurals and erection of shed for gas turbine power stations at Uran (R C Order No. S-4608), it is seen that as per the terms of the contract, the company was required to "fabricate steel structures for portals, frames, columns, roof trusses, purlins, bracings and crane beams including all connections such as bolts, nuts, washers, all materials being of tested quality conforming it with the relevant Indian Standards, all structural elements to be painted with one primary coat of shop paint of red oxide, zink chromate primer, thickness 50 M.Y. Supply, fabrication and delivery at site...of anchorage materials, of steel profiles and steel cages to be welded together."

As per the terms and conditions of the contract each part whether it is beams, columns, purlins, or bracings, have to be fabricated as per the specific design/drawing/specification supplied by the customers. On going through some of the drawings furnished by the company, it is seen that detailed specifications in respect of design, size and thickness is given. The "columns" and "beams" are made either from standard I sections obtained from primary manufacturers. However, if columns and beams longer than 10 or 12 metres are required to be made, then the company is first making the l-sections out of duty paid steel plates. The trusses and bracings are generally made from angles. The different of holes, assembly in factory, welding, bending if required and painting. The nature of job done be the company can not be regarde