Per Justice U.L. Bhat :

1. The appellant is a State Government Undertaking engaged in fabrication of tower components, transformers, structural materials and steel structures for building construction, as per contract entered into with Tamil Nadu Electricity Board and others. The appellant has been purchasing angles and channels from the market and subjecting the same to straightening, cutting and punching before supplying the same to their customers. Such supplies have been made without paying Central Excise duty.

2. Notice was issued to the appellant in respect of the period 28.2.86 to 14.2.88 informing that the products referred to above are subject to excise duty as they fall under heading 7308.90 and requiring the appellant to show cause why duty on the value of the products so cleared should not be demanded. The appellant resisted the notice contending that angles and channels when cut and punched do not cease to be angles and channels and do not become a new commodity as known in the market and as such the appellant was not "manufacturing" these products and therefore, there was no duty liability. The Additional Collector over ruled this contention and confirmed the deman