IN THE  SUPREME COURT OF INDIA                  CIVIL  APPELLATE  JURISDICTION                                    CIVIL APPEAL NOs. 2566-2569 OF 2003  

Commnr. of Central Excise, Mumbai ..    Appellant(s)

                    Versus

M/s. Tikitar Industries & Anr. ..    Respondent(s)  

                                                      O R D E R

In  these  appeals  under  Section  35-L(b)  of  the  

Central  Excise  Act,  1944,  (for  short,  “the  Act”),  the  

following    two questions have been framed  by the revenue  

for adjudication :

(i)  Whether  the  conversion  of  `Straight Grade Bitumen' not `Blown Grade  Bitumen'  amounts  to  manufacture  or  not;  and    

(ii)  Whether  `Roof  Felt'  is  classifiable  under  Chapter  sub-heading  5903.90 or 5907.90 ?

Since  admittedly  answer  to  both  the  afore-noted,  

questions stands concluded by the decisions of this Court,  

we deem it unnecessary to state the facts giving rise to  

these appeals.

Insofar  as  the  first  question  is  concerned,  a  

similar issue came up for consideration before this Court  

in  the  case  of the  present assessee in Commissioner of

..2/-

: 2 :

Central Excise and Customs vs.  Tikatar Industries, 2006  

(202) E.L.T. 215 (S.C.).  Relying on the circular issued by  

the Board on 1st July, 1988,   it was held that the process  

of  converting  straight  grade   bitumen  into  blown  grade  

bitumen through Oxidation, known as blowing process, does  

not amount to manufacture and therefore, exempted  from  

payment  of Excise duty.  Thus, while observing that the  

Revenue cannot be permitted to take a stand contrary to its  

own  stand  in  the  said  circular,  the  view  taken  by  the  

Customs, Excise and Gold (Control) Appellate  Tribunal (for  

short, “the Tribunal” was affirmed.  

Similarly, the second issue was considered by this  

Court in  C.C.E., Navi Mumbai vs.  Amar Bitumen & Allied  

Products Pvt. Ltd., 2006 (202) E.L.T. 213 (S.C.) and it was  

held  that  `Bitumenised  Hessian  based  felt'  was  

classifiable  under  Chapter  Heading  59.09  and  the  

assessee would be entitled to exemption from payment of  

excise duty under Notification Nos. 53/65-C.E. and 92/94-

C.E.  dated  20th  March  1965,  and  25th April,  1994  

respectively.  

..3/-

: 3 :

In the light of the opinion expressed by this Court  

in the said pronouncements, with which we are in respectful  

agreement, we affirm the findings recorded by the Tribunal  

and answer both the questions in favour of the assessee and  

against the Revenue.  The appeals, being devoid of any  

merit,  are  dismissed  accordingly.   The  parties  shall,  

however, bear their own costs.  

                                    ....................J.             [ D.K. JAIN ]                                 

                                          ....................J.             [ T.S. THAKUR ]  

                  NEW DELHI, APRIL 22, 2010.