2006 (6) TMI 301

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....n & penalty of Rs. 10 lakhs imposed on the Managing Director under Rule 209A and Rule 26 of the Rules. 1.2 The company is engaged in the manufacture, inter alia, of 'plastic laminated film and pouches' at their factory at Mahad and hold necessary registration. They started a processing unit in Silvasa in their own name where manufacture of pouches falling under Heading 3923.90 was undertaken. They were carrying out the activity of slitting and cutting of duty paid plastic laminated films, into smaller rolls up to August 2001, thereafter they stopped both these activities. 1.3 They had cleared plastic film on payment of duty to Silvasa unit. The jurisdictional officers issued a notice alleging that the said activity of slitti....

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....of duty since the said activities would not have been possible without his knowledge or indulgence. (vi)   that credit of Modvat claimed by the Appellants for their having not followed the procedure, is not available. (vii)  that since the SCN was issued on 16-1-2002 covering the period 1-2-2001 to 31-10-2001 demand is within time as w.e.f. 12-5-2000 the limitation has been increased from six months to one year: 1.5 The grounds taken in this appeal are : "Ld. Commissioner has erred in passing the impugned order without considering and appreciating the submissions made before him, provisions and settled position of law on the issue, inasmuch as : (i)   that activity of conversion of Jumbo Rolls (5....

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....to be not amounting to manufacture following the decision of the Apex Court in the case of Indian Aluminium Cables Ltd. v. Union of India, 1985 (21) E.L.T. 3 (S.C.), wherein the Court has laid down : "13. To sum up the true position, the process of manufacture of a product and the end use to which it is put, cannot necessarily..." The above stipulation was arrived at after concluding in Para 13 of the report : "The process of manufacture is bound to undergo transformation with the advancement in science and technology. The name of the end-product may, by reason of new technological processes, change but, the basic nature and quality of the article may still answer the same description..." Therefore, if by slitting the jumbo roll....