TaxTMI 
TaxTMI 
2008 (7) TMI 108
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.... appellant is a manufacturer of matches following under chapter heading 360500. They manufacture 'match sticks' and also manufacture 'empty match boxes' (also referred to as printed paperboard boxes) for packing the match sticks. (b) They buy duty paid paper and paperboard for manufacture of such printed paperboard boxes. During the course of manufacture of such empty match boxes, waste/scrap/parings of paper and paperboard arises. Such scrap generated was sold for consideration. (c) During investigation, the officers recovered private records relating to stock and sale of such waste/scrap of paper or paperboard. Show cause notice was issued holding that such waste material sold were classifiable under sub-heading 4702.90 and that app....
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....ture of empty match boxes. They sold the waste paper and paperboard at a very nominal price. 4.2 He relied on the following decisions to claim that the impugned goods are not excisable :- 1. Kores India Ltd. v. CCE, Chennai - 2004 (174) E.L.T. 7 (S.C.) 2. Shyam Oil Cake Ltd. v. CCE, Jaipur - 2004 (174) E.L.T. 145 (S.C.) 3. CCE, New Delhi v. SR. Tissues P. Ltd. - 2005 (186) E.L.T. 385 (S.C.) 4. Union of India v. Parle Products P. Ltd. - 1994 (74) E.L.T. 492 (S.C.) 5. Union of India v. Indian Aluminium Co. Ltd. - 1995 (77) E.L.T. 268 6. CCE v. Indian Aluminium Co. Ltd. - 2006 (203) E.L.T. 3 (S.C.) 7. CCE, Markfed Vanaspati.& Allied Inds. - 2003 (153) E.L.T. 491 (S.C.) 8. Statesman Ltd. v. ACCE & Ors. - 1987 (31) E.L....
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....nipulation. Naturally, manufacture is the end result of one or more through which the original commodities are made to pass. The nature and extent of processing may vary from one class to another. There may be several stages of processing, a different kind of processing at each stage. With each process suffered the original commodity experiences a, change. Whenever a commodity undergoes a change as a result of some operation performed on it or in regard to it, such operation would amount to processing of the commodity. But it is only when the change or a series of changes takes the commodity to the point where commercially it can no longer be regarded as the original commodity but instead is recognized -as a new and distinct article that a ....
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....erally accepted test to ascertain that there is 'manufacture' is whether the change or the series of changes brought about by the application of processes take the commodity to the point where, commercially, it can no longer be regarded as the original commodity but is, instead, recognized as a distinct and new article that has emerged as a result of the process. There might be borderline cases where either conclusion with equal justification can be reached. Insistence on any sharp or intrinsic distinction between 'processing and manufacture' results in an oversimplification of both and tends to blur their interdependence. [See Ujagar Prints v. Union of India - [1989 (3) SCC 488]. 14. To put differently, the test to determine whether a p....