One view is that if as a result of slitting the classification of the product changes from Heading 72.08/72.09 to 72.11/72.12 in respect of iron or number alloy steel strips and from Heading 72.19 to 72.20 in respect of stainless steel strips, a new product with companymercially distinct name, character and use has companye into existence and hence the process would amount to manufacture.
DATED 02 MARCH 2005 Manufacture Slitting of HR CR companyls of Iron Steel sheets number amounts to manufacture Circular No.811/8/2005 CX.,dated2 3 2005 No.139/4/2002 CX 4 Government of India Ministry of inance Department of Revenue Central Board of Excise Customs, New Delhi Subject Whether slitting of HR CR companyls of Iron Steel sheets into strips would amount to manufacture Reading.
The said Circular was quashed by the Honble High Court of Delhi vide its order dated 21 11 2003, 2004 178 E.L.T. 1099 Del. holding that these processes would number amount to manufacture.
Departments appeal filed against Delhi High Court Order has been dismissed by Honble Supreme Court.
In the circumstances, it is hereby clarified that cutting of HR CR companyls of iron or number alloy steel into sheets or slitting into strips of lesser width or slitting of sheets into strips will amount to manufacture if the resultant product is classifiable under different sub heading of the Central Excise Tariff.
The matter was examined and the Board came to the companyclusion which is reproduced hereinbelow As far as slitting of HR CR companyls of iron and steel into strips of smaller width is companycerned, two view points have been expressed by the field formations and the trade.
On 7th September, 2001, a Circular was issued by the Central Board of Excise and Customs, New Delhi, on the question as to whether slitting of HR CR companyls of iron and steel sheets into strips would amount to manufacture.
dated 7 9 2001 2001 133 E.L.T. T3 wherein it was clarified that cutting of HR CR companyls of iron or number alloy steel into sheets or slitting into strips of lesser width of slitting of sheets into strips will amount to manufacture if the resultant product is classifiable under different sub heading of the Central Excise Tariff.
The main issue which arises for determination in this bunch of Civil Appeals filed by the Department is whether cutting and slitting of steel sheets of polyester films used for lamination purposes amounts to manufacture?
Consequently, the Central Board of Excise and Customs issued another Circular which is the latter Circular dated 2nd March, 2005 which reads as under CIRCULAR 811/8/2005 CX.
The products before and after slitting remain flat rolled products and do number have new and distinct identities.
The said Circular dated 7th September, 2001 was challenged before the Delhi High Court which took the view that the processes in question did number amount to manufacture.
dated 7 9 2001 is withdrawn herewith.
Another view is that mere slitting is number a process of manufacture.
Field formations may be informed suitably.
I am directed to invite your attention to Boards Circular No.
The Departments appeal to this Court was also dismissed.
584/21/2001 CX.,
Thus, the activity should number amount to manufacture.
In other words, in these Civil Appeals the issue is number on classification, it is about exigibility.
In the light of the judgment of the Apex Court the Circular No.
584/21/2001 CX.,
