Collector of Central Excise, Madras. v. Kutty Flush Doors & Furniture Co. (p) Ltd.

SABY ASA CHI MUKHARJI, J. This is an appeal under Section 35L(b) of the Central Excise and Salt Act, 1944 (hereinafter called 'the E Act'). The appeal is directed against the Order of the Customs Excise and ·Gold (Control) Appellate Tribunal (hereinafter called 'the CEGAT'). The respondent herein filed a classification list on 16th March, '~ ,, \ 19b8l 2 sTheekingbappr?val of fhSawn timdber and dnh· ed timbber 1 as non-excis 1 - \ F a e. e su m1ss1on o t e respon ent wast at t1m er ogs were on y ~ sawn into sizes and these did not tantamount to any manufacture .. However, the Assistant Collector, Madras, held that the conversion of timber' logs into sawn timber satisfied the conditions of manufacture insofar as the conversion of timber logs into sawn timber involves transformation whereby a new and different article with the distinct G name, character or use emerges which is different from timber logs. It was held accordingly that excise duty @ 8% ad valorem under Tariff Item 68 of the erstwhile Central Excise Tariff was leviable. The respondent filed an appeal before the Collector of Appeals who concurred with the Assistant Collector upholding the duty. H Aggriev~d thereby the respondent filed an appeal before the CEGAT. ··~. I COLLECTOR OF C.E. v. KUTI'Y FURNITURE [MUKHARJI, J.[ 365 The Tribunal in the Judgment under appeal, relied on its decision in the case of Sanghvi Enterprises, Jammu, Tawi v. Collector of Central Excise, Chandigarh, 11984] Vol. 16 ELT 317 and the Kamataka High Court in the case of Y. Moideen Kunhi & Ors. v. Collector of Central Excise, Bangalore & Ors.,· 11986] Vol. 23 ELT 293 and came to the conclusion that no new product emerges by sawing of timber into several sizes. In the premises the Tribunal allowed the appeal of the respondent. Hence, this appeal. · It is well-settled that excise-duty becomes chargeable only when a new and different article emerges having a distinct name, character and use. See in this connection the observations of this Court"in Union of India v. Delhi Cloth & General Mills, 11963] 1 Suppl. SCR 586 and South Bihar Sugar Mills Ltd. etc. v. Union of India & Ors., 11968] 3 SCR 21. This principle is well-settled. This is a question of fact de­ pending upon the relevant materiai whether as a result of activity, a new and different article emerges having a distinc.t name, character and use. The use of expression 'manufacture' was explained in the case of Allenburry Engineers Pvt. Ltd. v. Ramakrishna Dalmia & Ors., I 1973] 2 SCR 257. In State of Orissa & Ors. v. The Titaghur Paper Mills Co. Ltd. & Anr., .11985] 3 SCR 26 which was a decision on the Orissa Sales Tax Act, this question was considered in the background of the · fact whether planks, cut into sizes, etc., sawed out of logs, are diffe­ rent from logs in its nascent state. It may be worthwhile to note that 'manufacture' implies a change, but every change is not manufacture and yet every change of an article is the result of treatment, labour and manipulation. But something more was necessary and there must be transformation; a new and different article must emerge having a distinct name, charac­ ter or use. See Union of India v. Delhi Cloth Mills (supra) at page 596 of the report. Having regard to the facts found in this case by the Tribunal, which ultimately is the finaJ fact finding authority, we are of the opinion that regard being had to the principles for detqrmining the questions which were correctly applied in the decision of th~ Tribunal, in the facts of this case, the conclusion of the Tribunal is unassailable. In the premises there is no merit in this appeal and the same is accordingly dismissed. N.P.V. Appeal dismissed.