TaxTMI 
TaxTMI 
2016 (3) TMI 263
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....f two sets of 4 appeals each, against Commissioner (Appeals) orders dated 26/12/2006 and 14/06/2007. All these appeals are taken up together for disposal. The main appellant M/s Whale Stationery Products Ltd. are engaged in the manufacture of Stencil Paper and Carbon Paper falling under Tariff Heading 4816 and 4809 liable to Central Excise duty. The main appellant is located in Dehradun. In January 2004 the appellant/assessee intimated the Department that they have undertaken substantial expansion in their unit and are eligible for exemption under Notification No. 50/2003-CE dated 10/06/2003 for their products coming under Tariff Heading 4816. They have also intimated that they have stopped production of Carbon Paper falling under Tariff He....
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....cation No. 50/2003-CE in view of Sl. No. 19 of Annexure I of the said Notification. The learned Counsel further submitted that said Carbon Paper is further cut and slit to make Carbon Paper of less than 36 cms. width. The finding of the lower Authority is that since such cutting process will amount to manufacture the appellant/assessee is liable to Central Excise duty. The Carbon Paper of larger size and the cut and slit Carbon size of less than 36 cms. width are falling under different Tariff heading involving manufacture in between. It was held that the appellant/ assessee is liable to pay duty and are entitled for Cenvat credit on such payment. The learned Counsel pleaded that the original proceedings against the appellant/assessee were ....
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....the findings of the lower Authority. He submitted that though the learned Commissioner (Appeals) found that the appellant/assessee undertaken substantial expansion, the benefit of notification was not extended on the ground that the appellant/assessee are engaged in the manufacture of carbon paper of width exceeding 36 cms. falling under Tariff Heading 4809.10. The said product being cut and slit to make carbon paper of lesser dimension will amount to manufacture. He supported the findings in the impugned orders. 5. We have heard both the sides and examined appeal records. Though the original proceedings against the appellant/ assessee was mainly on the ground that they have not undertaken substantial expansion of their production capaci....
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....cks them accordingly and clears the same. The Department has not brought forward any evidence to the effect that even after expansion the appellant/assessee is clearing only Carbon Papers of width exceeding 36 cms. The learned Commissioner (Appeals) in his impugned order dated 26/12/2006 recorded that at first Carbon Paper with normal width exceeding 36 cms. is manufactured by the unit and subsequently after printing and coating the same can be converted/sized to Carbon Paper of less width and length by dividing and cutting machine as per the requirement of the market. Having recorded so, the learned Commissioner (Appeals) proceed to conclude that cutting Carbon Paper of broader width to smaller size will amount to manufacture and hence dut....