2018 (5) TMI 385

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....lysacks Pvt. Ltd. (herein after referred to as M/s.PPP for short) under job work challans for the conversion of raw materials into PP packs / sacks under Notification No.. 214/1986-CE dated 25.3.1986. In terms of the Notification, the goods may be used in or in relation to the manufacture of the final product or cleared as such from the factory of the supplier of raw materials subject to the condition that the supplier of raw material gives an undertaking to the Assistant / Deputy Commissioner having jurisdiction over the factory of the job worker that the onus of discharging of liability of central excise duty rests with him. Notification No.83/1994-CE dated 11.4.1994 grants exemption from payment of central excise duty from the whole of c....

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....n in the case of Union of India Vs. J. G. Glass Industries Ltd. - 1998 (97) ELT 5 (SC). 3. Against this, the ld. Senior Advocate Shri B.Kumar appeared and argued on behalf of the respondent. He adverted to the show cause notice as well as the order in original and submitted that the respondents were not merely printing the names of the customers on the bags but were also undertaking the packing of the sacks. The activity fully falls under deemed manufacture and therefore the respondents have rightly availed the SSI exemption benefit under Notification No. 8/2003. He argued that the very same issue was considered by the Hon'ble Supreme Court in the case of Commissioner of Central Excise, Mumbai Vs. Fitrite Packers - 2015 (324) ELT 625 (SC....

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.... depending on their requirements. This printing is done in jumbo rolls of GIP twist wrappers. Bulk orders are received from Parle, which needs the said paper as a wrapping/packing paper for packing of their goods. On the paper, logo and name of the product is printed in colorful form. After carrying out the printing as per the requirement of the customers, the same is delivered to the customers in jumbo rolls without slitting. The issue is as to whether this printing process amounts to manufacture or not?" The Hon'ble Apex Court held as follows:- "10. On the facts of the present case, it is to be determined as to whether the case would fall under category (2) or category (4). We have already taken note of printing process. A cur....

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....tendent of Central Excise - (1997) 10 SCC 717, the commodity in question was brake lining blanks. It was held on facts that such blanks could not be used as brake linings by themselves without the processes of drilling, trimming and chamfering. It was in this situation that the test laid down was that if by adopting a particular process a transformation takes place which makes the product have a character and use of its own which it did not bear earlier, then such process would amount to manufacture irrespective of whether there was a single process or several processes." 11. The ratio thereof is explained in paragraph 24 in the following words : "24. It is important to understand the correct ratio of the judgment in the J.G. Gl....