CIR NO.811/08/2005-CX, DT. 02/03/2005

Whether slitting of HR/CR coils of Iron & Steel Sheets into strips would amount to manufacture-Regarding
I am directed to invite your attention to Board"s circular No. 584/21/2001-CX dated 7.9.2001 wherein it was clarified that cutting of HR/CR coils of iron or non-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.

2. The said Circular was quashed by the Hon"ble High Court of Delhi vide its order dated 21.11.2003 holding that these processes would not amount to manufacture. Department"s appeal filed against Delhi High Court Order has been dismissed by Hon"ble Supreme Court.

3. In the light of the judgment of the Apex Court, the Circular No. 584/21/2001-CX dated 7.9.2001 is withdrawn herewith.

4. Field formations may be informed suitably.

5. Hindi version will follow.

(MANISH MOHAN)
Under Secretary to the Government of India

F.No.139/4/2002-CX-4

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