2018 (11) TMI 741

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....ts supplies jute bags to different State procuring agencies, mostly for the purpose of packaging foodgrains. This trade is regulated by the Jute Packaging Material (Compulsory Use of Packing Commodities) Act, 1987. The Jute Commissioner usually places the order on behalf of the different State procuring agencies. 2. The dispute involved in this matter is on imposition duty under the Central Excise Act, 1944 treating the jute bags of the appellants as branded jute bags. Show cause notice was issued against the appellant No. 1 for not paying excise duty while clearing their products. The appellants in their writ petition claimed exemption under Notification bearing No. 30/2004-C.E., dated 9th July, 2004 read with the amended Notificatio....

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....ags, given the Jute Control Order and the requisition orders made thereunder. Obviously, such markings are made by compulsion of law, which are meant for identification, monitoring and control by Governmental agencies involved in the PDS. Neither do such markings enhance the value of the jute bags in any manner nor is it the intention of the appellants to so enhance the value of jute bags, which is necessary if excise duty is to be imposed. This flows from the expression "... for the purpose of indicating, or so as to indicate, a connection in the course of trade between the product and some person using such name or mark....." In the present case, the markings on the jute bags are not for the purpose of indicating a connection in the cours....