H.R. Syiem, Member (T)

1. This is an appeal on behalf of M/s. R.S. Steel Works against the order of the Appellate Collector of Central Excise, New Delhi, No. O/MRT/CE/81 undated. M/s. R.S. Steel Works subject MS sections and angles received on behalf of M/s. U.P. Electricity Board to the processes of cutting, sizing, galvanizing and punching etc. The Appellate Collector held that M/s. R.S. Steel Works had manufactured new goods since, according to him, they also erected towers for which they manufactured the components. He came to the conclusion that M/s. R.S. Steel Works manufactured towers by referring to a contract No. ETDC/TD/50(A) which was for design, fabrication and galvanizing, painting of towers.

2. The appellants maintain that the Appellate Collector was mistaken to refer to this contract, because it had not been signed. He himself referred to the contract as a draft contract. The appellants maintain that they received MS angles which they subject to the process of cutting, galvanizing, punching etc. These sections after punching and other work, are used by the Electricity Board in the erection of transmission tower. They maintain that the actual erection of the towers