Manufacture test for printed and slit cork tipping paper led to unconditional stay and waiver of pre-deposit.

Printing and slitting cork tipping based paper was examined on whether the process amounted to manufacture under section 2(f) of the Central Excise Act, 1944. The Tribunal relied on an earlier decision holding that the same activity did not constitute manufacture and, on that basis, found a prima facie case and balance of convenience in favour of the assessees for stay purposes. The stay applications were allowed unconditionally, with waiver of pre-deposit of duty and penalty.

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Issues: Whether the process of printing and slitting cork tipping based paper amounted to manufacture for the purpose of excise duty, and whether waiver of pre-deposit of duty and penalty should be granted.

Analysis: The impugned order had treated the process of printing and slitting cork tipping based paper as manufacture under Section 2(f) of the Central Excise Act, 1944. The Tribunal noted that an earlier decision had held that the same activity did not amount to manufacture. In view of that precedent, the Tribunal found a prima facie case and balance of convenience in favour of the appellants for the purpose of stay.

Conclusion: The stay applications were allowed unconditionally.

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