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SUPREME COURT OF INDIA

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CASE NO.:

Appeal (civil) 4247-4248 of 2000

PETITIONER:

Siddhartha Tubes Ltd.

RESPONDENT:

Commissioner of Customs & Central Excise, Indore (MP)

DATE OF JUDGMENT: 16/12/2005

BENCH:

Ashok Bhan & S.H. Kapadia

JUDGMENT:

JUDGMENT

KAPADIA, J.

The short question which arises for determination in these civil appeals

filed by the assessee under section 35-L(b) of the Central Excise Act, 1944

(hereinafter referred to as "the Act") is - whether there was value

addition on account of galvanization includible in the assessable value of

m.s. galvanized pipes. In these civil appeals, we are concerned with the

period May 1994 to July 1996.

Appellant was engaged inter alia in the manufacture of m.s. galvanized

pipes. These pipes were made from H.R. coils. The pipes emerging on hydro

testing stage were pickled in acid, washed in running water and galvanized

by dipping in molten zinc.

The appellant filed its classification list claiming that "galvanization"

did not amount to manufacture. The appellant claimed that m.s. galvanized

pipes were non-excisable goods, as the said pipes had been processed out of

duty paid m.s. pipes manufactured in it