TaxTMI 
TaxTMI 
2018 (4) TMI 1492
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....is engaged in the manufacture of metalized polypropylene film and metalized polyester film falling under tariff heading 3920.2090 and 3920.6290. The assessee is availing Cenvat credit on capital goods and inputs. The said inputs were used for manufacturing finished goods which are metalized films used for manufacturing capacitors. The assessee is also availing the benefit of Notification No.25/99-Cus dated 28.2.1999 and Notification No.25/2002-Cus dated 01.03.2002, as applicable during the relevant period and also registered with the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods), Rules, 1996. A show cause notice dated 6.12.2006 was issued to the appellant that the activity of metalizing does not a....
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....tion No.25/99-Cus dated 28.2.1999 and Notification No.25/2002-Cus dated 01.03.2002 redundant as the imported goods as well as finished goods has been mentioned therein for availing exemption under the said notifications. It is the contention of the assessee that the activity of metalizing undertaken by the appellant amounts to manufacture as per the process stated by the assessee. He also submits clarification sought from the Ministry of Communication and Information Technology and it was clarified that there is a great deal of difference between the plastic film and the metalized film manufactured by the assessee. Therefore, the decision of Hon'ble Supreme Court in the case of Metelex India vs. CCE, 2004 (165) ELT 129 (SC) is not applicabl....
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....ation of film does not amount to amount, therefore, the assessee is not entitled to avail Cenvat credit and consequently, refund claim of Cenvat credit is not admissible to the assessee. 7. Heard the parties and perused the record. 8. On careful consideration of the submissions made by both sides, we find that the process of manufacture has been explained by Shri R. Rohila, working as Production Manager with the assessee. The same is reproduced as under:- 4. Whereas, a statement of Shri R.Rohila, working as Production Manager with the Noticee was recorded under Section 14 of the Act. In his statement dated 15.07.2005, Shri Rohilla, interalia stated that their raw materials were Poly Propylene (P.P.) and Polyester Films upto 12 Micron; th....
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....rocess to ensure that one side of the insulting material is converted into a conductor having a desired thickness with adequate free margin and heavy edge. After metallization process the polypropylene film is no longer a film with insulting properties but a metalized film with conducting properties ready to be used in capacitors. Therefore, the raw material has been transformed into something new i.e. Electronic Capacitor Grade Aluminium Metalized Dielectric Plastic Film which can be used for manufacturing electronic capacitors and the Ministry of Communication and Information Technology clarified that there is a great deal of difference between the plastic film and the metalized film manufactured by the assessee. 10. We further take note....
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....able Goods) Rules, 1996. TABLE S. No. Chapter Description of imported goods Description of finished Goods (1) (2) (3) (4) 52 39 Plain plastic film (other than Polystyrene film/of thickness 12 microns or below Electronic capacitor grade metallised dielectric plastic film. Notification No.25/2002-Cus dated 01.03.2002: Exemption to capital goods imported for use by IT/Electronics Industry - In exercise of the powers conferred by sub-section(1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the goods specified in column(2) of the Table below, and falling under Chapters 82, 84, 85 or 90 of the First Schedule to the C....
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....citors ; Electronic capacitor grade metallised plastic films for capacitors. 11. We have seen that as per notifications extracted hereinabove, There is great deal of difference between description of imported goods and description of finished goods. If the description of imported goods and description of finished goods are same, then the notifications become redundant , it is not intention of the legislation. From the tenor of the notification, it is clear that inputs procured by the assessee are altogether different from the goods manufactured by the assessee. Therefore, as the name, character and use of the product has been changed. In that circumstance, the activity undertaken by the assessee shall amount to manufacture. 12. We further....