(1) Iron/Steel Angles Plates, Channels and Round Bars supplied by the Gujarat Electricity Board are cut into pieces, given bend and punched according to order of G.E.B. galvanised by dipping in molten Zinc and .returned to the supplier. The processed products remain covered under T.I. 26AA as no new products come into existence.

(2) Products of iron and steel supplied by the customers are returned to them in the same physical condition after galvanising by dipping them in molten zinc.

(3) Iron/steel products galvanised supplied by the customers returned to them in the same physical condition after regalvanising by dipping in molten zinc.'

The Assistant Collector passed orders on 1.5.1981 holding that in respect of Item 1 the various processes such as bending, punching, cutting and galvanising the component parts for erection of transmission towers were manufactured by them and would come under Section 2(f). On Item 2, he held that the respondents simply galvanising the products and the. item should not attract duty. A similar view was expressed in respect of item 3. The items mentioned at Serial No. 1 were directed to be classified under T.I. 68.

3. Against this order the appellants preferred an appeal to the Appellate Collector. In their appeal they urged that the raw-materials were supplied by the Gujarat Electricity Board but no new article of material having distinct name, character or use emerged after the processes in question. They have stated that even after the processes the products would remain under T.I. 26AA and the classification under T.I. 68 was not justified.

4. The Collector in his Order dated 2.4.1985 held that none of the processes undertaken by the respondents on the iron and steel angles and channels, bars and plates received by them would amount to manufacture. Following the decision in D.C.M.'s case, South Bihar's case as well as Vulcan Laval case, he held that the articles would not come within the purview of the manufacture. He has also observed that the transmission towers which were erected at the site from the structural materials taken thereto were permanent structures and would not admit of the definition or description of the goods. The appeal was allowed. Hence, the Department has come forward with the present appeal.

5. In the grounds of appeal it is submitted that consequent to the processes carried on by the respondents different articles having distinct name and user would emerge and the finished materials were cleared with the description "raw-materials for transmission tower". The Collector has placed relian