1993 (1) TMI 100

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....per, plain or printed, resulting in the preparation of "paper-backed aluminium-foil" did not amount to manufacture of a new and commercially distinct article. By this writ petition respondent sought to restrain the appellant from levying and collecting duty on "paper-backed-aluminium-foil" in respect of its transactions for the period between February, 1980 and August, 1983. 3.The High Court noticed the scope of the controversy in the proceedings thus : "The short question which falls for determination is whether the company is liable to pay duty under Tariff Item No. 27(c) in respect of process of backing of duty paid aluminium foils...." The High Court proceeded to answer this question against the revenue on two grounds. The first was ....

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....h Court on 13th August, 1987. Be that as it may, the matter of this nature does not stand concluded by a mere non-traverse. The question whether the process involved in converting the "aluminium-foil" into "paper-backed aluminium-foil" amounts to manufacture within the meaning of S. 2(f) of the Central Excises and Salt Act, 1944, or not, turns upon whether as a result of the application of the process a new and commercially distinct article, known to the market as such, emerges at the end. This, in turn, depends upon the evidence as to the requisite transformation of the goods into a new and different article having distinct identity and character or use. Unless this occurs, the process, however elaborate it might otherwise be, would not g....