M. Santhanam, Member (J)

1. The appellants own a factory where wire-drawing operations are carried out. Wire rod in coil form is the raw material and the final product is wire rod in coil form of a lesser diameter. The appellants filed classification list under T.I. 26AA. While assessing RT-12 Returns, the department raised a demand of Rs. 1,03,873/- on the ground that the process of drawing of wires from wire-rods amounted to manufacture and that the wires so drawn were excisable under T.I. 26AA(i-a). The Assistant Collector also imposed a penalty of Rs. 3,000/- and confirmed the duty demand.

2. On appeal, the duty was confirmed but the penally was set aside.

3. Shri Darshan N. Shah, Partner of the appellants submitted that the duty paid on rods of thickness 6 mm and 8 mm formed the raw materials and the wires drawn are of the thickness of 3 mm, 4 mm and 5 mm respectively. According to him, another firm got the benefit of refund and the benefit of Notification 75/67-CE was extended. Since both the products would come under the heading 'wires', the appellants pray for setting aside the demand.

4. Sh. J.N. Nigam, SDR, urged that the demand relates to the period April, 1980 to April