2011 (2) TMI 64

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....anufacturing process ? 2 Whether in the facts and circumstances of the case and in law, the Tribunal is right in holding that the process of embossing on aluminium paper back foil and cutting it to shape for the purpose of packing of the cigarettes does not amount to manufacture ? 2. This appeal is filed by the Commissioner of Central Excise, Mumbai-V challenging the order dated 19/4/2005 passed by the CESTAT. The respondent ('assessee' for short) is the manufacturer of cigarettes and falling under CH.S.H.2403.11 scheduled to CETA 1985. The assessee used duty paid paper back aluminium foil in the roll form for the purpose of packing cigarettes. In the process the cigarette roll is cut to size and got embossed with word 'PULL' and is wrapp....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sing itself is manufacturing and the product that emerges on embossing is a new product. Secondly aluminium foil brought in bulk by the assessee on payment of excise duty is also subjected to the process of cutting it into small pieces which changes the form and nature of the foil and hence the said process amounts to manufacturing. Accordingly counsel for the revenue submitted that the order passed by the CESTAT is liable to be set aside. 5 Mr. Sridharan, learned counsel appearing for the assessee in reply submitted that the assessee purchases a roll of aluminium foil with backing of white paper and the roll is cut in pieces and on one side of each piece word 'PULL' is embossed in which the cigarettes are filled in with the help of machin....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e, the said ruling is distinguishable . 7 Use of aluminium foil which is cut to the size and embossed is in a continuous process of packing the cigarettes in the packets. Manufacturing as defined in section 2(f) of the Central Excise and Salt Act, 1944 includes any process enumerated therein. However, all the processes would not amount to manufacturing under the Act. Process is not defined under the Act . So it is understood in a common parlance. The process may be a flow , progress , movement, transformation, change continuation, a link , an action , happening, etc.. Any process which produces distinct and identifiable commodity and renders marketable value the can be called manufacture. A commodity whether manufactured or not necessarily....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....l commodity. In Collector of Central Excise Vs. Technoweld Industries,2003 (155) ELT 2009 (S.C.)the Supreme Court has dealt with the issue that drawing wires from wire rods is manufacture or not and it is held that both the products being wires are not considered excisable merely because they are covered by two separate entries in the tariff. In Parle Products Pvt. Ltd. Vs.Union of India , 1991 (56) E.L.T.52(Bom.) the Division Bench of this Court has delt with a issue of use of aluminium foil with printed paper for packing whether amounts to manufacturing. In the said case the Division Bench of this Court held that the Department was clearly in error in recovering the duty from the company. Backing of aluminium foil with printed paper onl....