TaxTMI 
TaxTMI 
2016 (1) TMI 558
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....ure and clearance of articles of "paper and paper board" which they claimed as printed labels, classifiable under Chapter Sub-Heading 4821.00 of CETA, 1985; whereas, the department proposed its classification under 4823.90 alleging that the processes undertaken by the appellant resulted into "manufacture" as per Sec.2(f) of CEA,1944 and accordingly dutiable. On adjudication, the demand was confirmed. On Appeal, the Ld. Commissioner (Appeals) upheld the order of the adjudicating authority and rejected their Appeal. Hence, the present Appeal. 3. The ld.Sr.Advocate Dr.Samir Chakraborty for the appellant submits that the the packaging and printing division of the Appellant operate from two factories; one in Munger in the state of Bihar and....
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....mately used for packing of definite number of cigarettes, hence, could be termed as manufacturing activity of packing materials falling sub-heading 4823.90 of CETA, 1985 and chargeable to duty. It is his contention that activities carried out partly at Nepal and partly at Munger factory cannot be considered in arriving at the conclusion that the appellant were engaged in the manufacture of packing materials which emerges only at the factory of M/s.Surya Tobacco Co.Ltd., Nepal. 3.2 Further, he submits that in his subsequent order, bearing No.92/PAT/CEx/Appeal/2012 dated 04.05.2012, the ld. Commissioner(Appeals) decided the issue in their favour observing that the processes carried out in the factory premises at Munger do not result into m....
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.... the meaning of labels as per the HSN. The finding of the ld. Commissioner(Appeals) in the said order is as follows:- "On the issue of merit I would like to discuss the following points. The assessee made it explicitly clear in their submissions, that the SCN has not spelt out the departments contention on the question of manufacture and classification of SCPL, based on which the demand in the SCN has been made. Their TVT unit manufacturers printed sheets bearing the impression of labels and clears the same under sub-heading 4821.00 as labels of all kinds at NIL rate of duty. These printed sheets have perforations/markings indicating the place where the same are meant to be cut. AT their Munger factory, the continuous strips of ....
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....f is based on HSN. This factory position was admitted by the Assistant Commissioner in his order No.7/2000 dated 31.03.2000 quoting extract :- The rolls of quality paper are printed giving the print of brand with description of cigarettes to be packed/or put inside, statutory warning and number of cigarettes to be contained and name of Company where the same product will be used in such shape and specification giving demarcation line at which the same will be cut into sizes at one unit of M/s.ITC, Thiruvottiyur and cut into big sheet size. The same printed sheet cleared in the name of printed paper label classifying the same under sub-heading 4821.00 to M/s.ITC(PPD), Munger. At ITC(PPD) Ltd., Munger the printed sheets are cut to s....
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....preme Court that every process carried out on goods does not and would not amount to manufacture, unless it results in the emergence of a new commercial commodity having a distinct name, character or use, the burden to prove which is on the Revenue. This decision of the Honble Supreme Court lend support to the claim of the assessee in the instant case. Technically, it is also noted that the goods continue to conform to the description of "paper board labels of all kinds" within the meaning of Sub-Heading 4821.00 of the Central Excise Tariff Act, which were cleared from the Thiruvottiyur factory. The Central Excise authorities therein have allowed the said classification and have approved the same. Since no manufacturing activity t....