TaxTMI 
TaxTMI 
TaxTMI 
2014 (2) TMI 352
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...., learned DR the Revenue. 2. As per facts on record, the appellants are engaged in the manufacture of photo album classifiable under heading No. 48.20. The said photo album are exempted from payment of Central Excise duty leviable thereon. The appellants factory was visited by the Central Excise officer on 19.2.2003 and their manufacturing process was examined. Statements of Directors of the assessee appellants were also recorded wherein they detailed the manufacturing process and clarified that they use paper, paper board, BOPP film, lay flat tubings and glue etc. for the manufacture of inserts in the album. The process as detailed by the Director, in their statement is as follows: (i) The Lay Flat Tubings were purchased from outside and....
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.... 5 years. The notice also proposed confirmation of interest and imposition of penalties on the appellants as also on their Directors. The said notice culminated into passing of an order by the original adjudicating authority confirming the demands raised against the manufacturing units along with confirmation of interest and imposition of penalties upon them as also on the Directors. 5. On appeal against the above orders Commissioner (Appeals) vide his impugned order upheld the same in respect of duty confirmation and limitation. However, he remanded the matter to the original adjudicating authority for examination of the appellants claim of exemption under notification No. 8/1998 and 8/1999, i.e. small scale exemption notification, as als....
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....g. For using the said product, the edging of the tubes have to be cut so as to make open the tubes and to obtain the sheets. The said process, by no stretch of imagination, can be held to be the process of manufacture. 9. We have seen the two products i.e. tubings in which shape they are purchased from the market and the sheets which emerged after the edge cuttings. The technical literature on poly tubings and sheetings produced by the appellant on record reveal that poly tubings or lay flat tubings are continuous roll of polythene sleeving open at one end and rolled up at the other and are meant for inserting the products into the said tubings which are cut to required length and heat seal, staple or taped on one or both ends. The said tu....
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.... fixing eyelets does not amount to manufacture inasmuch as the said process do not change the basic characteristic of the raw material into something different. The original material which was tarpaulin is still called tarpaulin made ups even after undergoing the said process of stictching and fixing eyelets. Accordingly, the Hon'ble Supreme Court held that to attract duty there should be manufacture to result in different goods and mere conversion of the tarpaulin into tarpaulin made up would not amount to manufacture. In the case of CCE New Delhi vs. S R. Tissues Pvt. Ltd. [2005 (186) ELT 385 (SC)] the Hon'ble Supreme Court has held that slitting /cutting of jumbo rolls of plain tissue paper or aluminum foils into smaller size would not ....
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....rchased from the market in lump form when melted and put into moulds to cast it into a more convenient form for captive use in winding machine to wax product i.e. sewing thread does not result in manufacture inasmuch as the character of wax is not changed. Similarly in the case of CCE, Madras, vs. Kutty Flush Doors and Furniture Co.(P) Ltd. [1988 (35) ELT 6 (SC)] it was held that inasmuch duty becomes chargeable only when a new and entirely different item emerged having a distinct name, character and use which is dependent upon various factors. Larger Bench in the case of Anil Dang vs. CCE, Vapi [2007 (213) ELT 29 (Tri-LB)] held that slitting and cutting of duty paid plastic laminated film jumbo rolls cannot held to be an activity amounti....
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....on appearing under section 2(f) of the Central Excise Act. PVC product remains PVC product only and it is only shape of such PVC film which is being changed from the tubular form to lay flat form. Otherwise there is no difference in the composition of the product which only remains PVC film. 12. As such, we fully agree with the learned advocate appearing for the appellant that the said process of edge cutting will not get covered by the definition of manufacture. Similarly as held by the Honble Supreme Court in the above referred decision, the fact that starting product and the final product which fall under separate sub- headings would also not changethe scenario. Accordingly, we hold that appellants are not indulging into any act of man....