Case Law Details
Brief of the Case
In the case of CCE&C vs. M/s Rasmi Wax Coated Paper & Printing Industry it was held by Andhra Pradesh High Court that the subject processes viz., printing, slitting and winding Cork Tipping Paper does not amount to manufacture and no subject processes undertaken by the assessee was bringing into existence any new commodity.
Brief facts of the case
The respondent industrial concern received paper in jumbo rolls of width 470 mm to 520 mm and length 12,100 mts. The Jumbo rolls are cut into strips of width 35mm to 48 mm and length of 2000 mts., to 3000 mts., and the same returned to M/s VST Industries, Azamabad (in short VST), in smaller rolls, commonly known in trade as bobbins. These bobbins are used by the VST in its process of manufacture of filtered cigarettes. The Commissioner of Customs and Central Excise, Hyderabad, issued notice to the respondent alleging suppression of turnover with respect to the manufacturing of printed cork tipping paper falling under Chapter Sub-heading No.4901.90. The period covered under the show cause notice was 11/94 to 9/99. After considering the objections raised by the respondent, a duty of Rs.89,54,222/- was demanded along with equal amount of penalty coupled with interest. Against the Order-in-Original dated 29.05.2000 the respondent filed an appeal before the Tribunal. The Tribunal by its final order dated 11.05.2004 allowed the appeal following the case of RGL Convertors Vs. Commissioner of Central Excise, New Delhi equivalent to 2003 (154) ELT 711 (Tri.-Del). The Tribunal also distinguished the larger Bench order of the Calcutta Tribunal in the case of M/s Headway Lithographic Company Vs. Commissioner of Central Excise, Kolkata.
Held by Hon’ble High Court
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