TaxTMI 
TaxTMI 
2016 (6) TMI 1233
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....ep tissue paper into paper napkins, serviettes, tissue rolls, towels, facial tissue, etc. 3. In this writ petition, the petitioner has challenged the show cause notice dated 24-6-2015, in and by which, the respondent proposed to levy Cenvat duty due on conversion of the new raw materials into finished goods by considering it as amounting to manufacture. 4. It may not be necessary to labour much on the factual issue, since the case on hand is squarely covered by a decision of the Hon'ble Supreme Court in the case of Commissioner of Central Excise-I, New Delhi v. S.R. Tissues Pvt. Ltd., reported in 2005 (186) E.L.T. 385 (S.C.). In the said case, the respondent/assessee was engaged in the activity of cutting/slitting of jumbo....
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...., the assessee preferred an appeal to the Customs, Excise & Gold (Control) Appellate Tribunal, New Delhi. The appeal preferred by the assessee was allowed and the Tribunal held that the assessee was purchasing duty paid jumbo rolls of tissue paper that was used; that, thereafter, they used to cut/slit the tissue paper to various sizes suitable for use as toilet papers, table napkins or facial tissues and that this activity did not alter the name, character and end-use of the material and, therefore, the said activity/process did not amount to manufacture, both on first principles as well as in terms of Section 2 of the Central Excise Tariff Act, 1985. On appeal, the Hon'ble Supreme Court considered the nature of activity done by the petitio....
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....rocess of obtaining the finished product from such raw material automatically constituted manufacture. In the present case, merely because tissue paper in the jumbo roll of the size exceeding 36 cms. fell in one entry and the toilet roll of a width not exceeding 36 cms. fell in a different entry, it cannot be presumed that the process of slitting and cutting of jumbo rolls of toilet tissue paper into various shapes and sizes amounted to manufacture." . . . . . . . . . . . . . . 26. We accordingly hold that the process of slitting/cutting of jumbo roll of plain tissue paper/aluminium foil into smaller size will not amount to "manufacture" on first principles as well as under Section 2 of the said Act. As regards the manufacture of we....