- (1.) THESE civil appeals are filed by the assessee under Section 35-L of the Central excise Act, 1944 (for short, "1944 Act") and are against Final Order No. 3-7/2002-B dated 4. 1. 2002 in Appeal NO. E/2042-2046/2001-B and Final Order No. 120/04-B dated 19. 1. 04 in Appeal No. E/1558/03-B passed by CEGAT. By the impugned orders CEGAT has allowed appeals filed by the Revenue. By the impugned 'decision CEGAT has held that the process of swaging undertaken by the assessee on swaging machine on duty paid ms tubes falling under Heading 73. 06 of the schedule to the Central Excise and Tariff Act, 1985, amounts to "manufacture" within the meaning of Section 2 (f) of the 1911 Act.
(2.) FOR the sake of convenience we reproduce hereinbelow facts mentioned in Civil Appeal nos. 3621-25 of 2002 (lead matter ). M/s. Prachi Industries is the small scale unit. It buys duty-paid MS tubes from its manufacturers. The said MS tubes are classified under Heading 73. 06 of the schedule to the Central Excise and Tariff Act, 1985 (for short, "1985 Act" ). After receiving ms tube from the manufacturers, the assessee cuts the same into requisite lengths. The cut MS tube is thereafter put is the swaging machine in which dies are fitted which imparts "folds" to the flat surface of the MS tube/pipe. The short question which arises for determination in this batch of civil appeals is : "whether swaging constitutes manufacture in terms of Section 2 (f) of the 1944 Act?"
(3.) AT the outset, it may be reiterated that MS tubes bought by the assessee from its manufacturers falls under Heading 73. 06 and the Revenue seeks to demand duty once again under the same heading by treating the process of swaging as "manufacture". Accordingly, we quote hereinbelow chapter Note 3 in Chapter 73 which covers "articles of Iron and Steel" : "in relation to pipes and tubes of heading Nos. 73. 04, 73. 05 and 73. 06, the process of drawing or redrawing shall amount to 'manufacture'. " We quote hereinbelow the Heading 73. 06 which reads as follows: JUDGEMENT_415_JT4_2008Html1.htm ;