- (1.) This writ petition is directed to challenge the order passed by Central Custom Excise & Gold Control Appellate Tribunal, New Delhi dated 23-2-2001 affirming the order passed by adjudicating authority levying duty on the Marble slabs and tiles alleged to have been removed from the factory of the assessee without payment of Excise Duty and also levying penalty under Section 11AC of the Central Excise Act by holding that the assessee has clandestinely removed the marble slabs from the factory without payment of excise duty in order to evade the levy.
(2.) At the time when the proceedings were originally initiated, the department as well as the assessee both were labouring under the impression that cutting of marble blocks into marble slabs and tiles amounted to the manufacturing activity and invited levy of duty under the Central Excise Act in respect of end product removed from factory. On that premise, the contest was carried only about the levy of penalty. The Tribunal reduced the penalty by considering that the assessee has deposited the amount of duty demanded vide adjudicating order dated 21-11- 1997. However, interest liability was not reduced. The order of the Tribunal was made on 23-2-2001.
(3.) On September 18, 2003, the Supreme Court in case of M/s. Aman Marbles considered the question whether cutting the marble blocks into the marble slabs amounts to manufacture for the purpose of attracting duty under Central Excise Act? The Supreme Court referring to its earlier decision in Rajasthan State Electricity Board V/s. Associated Stone Industries & Anr ., 2000 6 JT 522 rendered under Rajasthan Sales Tax Act held as under : "It is not possible to accept that the excavation of stones and thereafter cutting and polishing them into slabs resulted in any manufacture of goods.";