- (1.) A short question which arises for our consideration in the present appeal is whether the process of conversion of Aluminium Ingots into Aluminium Billets during the intermediate stage by the process of re-melting and adding other alloys amounts to 'manufacture' within the meaning of Section 2(f) of the Central Excise Act, 1944 (hereinafter referred to as 'the Act') and Central Excise Duty is chargeable thereon
(2.) The facts of the case are that M/s Mahavir Aluminium Ltd., Bhiwadi (hereinafter referred to as 'the Assessee') was engaged in the manufacture of Aluminium Products falling under Chapter 76 of the Central Excise Tariff Act, 1985. The assessee was manufacturing Aluminium Billets and was consuming it captively for the manufacture of Aluminium Irrigation Pipes exempted from payment of duty. The assessee was also selling the said commodity in the market by paying Excise Duty.
(3.) It was the case of the Commissioner of Central Excise, Jaipur (hereinafter referred to as 'the Revenue') that the assessee did not mention the facts in classification lists/declarations filed under Rule 173 B of the Central Excise Rules, 1944 nor produced record relating to production of Aluminium Billets used for captive consumption and production of Aluminium Irrigation Pipes. A notice was, therefore, issued to the assessee on January 2, 1996 to show cause why an amount of Rs.1, 16, 56, 476/- towards clearance of Aluminium Billets for captive consumption by suppressing the fact that such consumption was for manufacture of fully exempt products should not be recovered as duty and why penalty should not be imposed along with penalty.;