Whether crushing of coal is manufacturing process in excise?

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This query is : Resolved

Sourav Sinha (Querist)

17 April 2014 The process is as below:
"Raw Coal is carried to a crusher machine, where it is crushed to desired size. During crushing, some coal are broken into very smaller pieces and are called under-sized coal which are sold in market as it is. Whereas the sized coal are taken into the manufacturing process for the production of Soft Smokeless Fuel Coke and its by-product."

Ques : - Whether the process of crushing of big sized coal from where under-sized coal is screened out and sold into market as it is, without undergoing into any manufacturing process is an event dutiable under Central Excise Act?
Whether the process of crushing of coal, a manufacturing process?
Pls. reply as early as possible, supported by any related case laws and provisions of the Act.

Arun Kumar Singh

Arun Kumar Singh (Expert)

18 April 2014 Converting coal into coal briquette is manufacture. Coal briquette is not same commercial commodity as coal- sone bhadra fuels v CTO (2006) 147 STC 594 (SC).

Sourav Sinha

Sourav Sinha (Querist)

18 April 2014 But Sir, I was asking about crushing of coal. And not converting of coal into coal briquette.

Santosh Kalburgi

Santosh Kalburgi (Expert)

27 April 2014 In this case it should be noted that whether a new and distinct product emerges from the activity carried on. In the instant case The activity of crushing of coal into small pieces again gives rise to coal only and no new product emerges, hence in my opinion there is no manufacturing taking place.

Regards,
Santosh G Kalburgi
Cost Accountant
9742022309

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