HEADWAY LITHOGRAPHIC COMPANY Vs. COMMNR. OF CENTRAL EXCISE

JUDGEMENT

(1.) THE Appellants herein are printing biri wrappers cut to size and they have been clearing these goods under the Central Excise Act under Chapter sub -heading 4821.00. The Department took the view that the case would be classified under Chapter heading 4823.19 and excise duty at the rate of 20% was payable. We may note that as per Assessee the goods are classified under heading 4821.00 the duty is nil.

(2.) SHOW cause notice was issued proposing to levy excise duty of Rs. 27 lakhs for the period August 1994 to March 1999. After eliciting reply from the Appellant, Order -in -Original was passed by the adjudicating authority confirming the demand contained in the show cause notice and also directing the Appellant to pay interest thereupon. The Appellant, in the reply, had taken the defence that the printing of the biri wrappers and thereafter cutting them to size does not amount to 'manufacture' and therefore no duty was payable. In addition, it maintained that the goods were to be classified under Chapter Heading 4821.00. These contentions were rejected by the adjudicating authority while passing the Order -in -Original.

(3.) WHEN the matter came up for final hearing before this Bench on the last date of hearing i.e. on 18.3.2015, after hearing the counsel for the parties at length on the issue as to whether the process would amount to 'manufacture' or not, it was felt that the issue of classification was inextricably linked with the issue of manufacture and therefore, that aspect should also be decided by this Court in this very appeal. This course of action was agreed upon by both the parties. However, Mr. Radhakrishnan, learned senior Counsel appearing for the Revenue, wanted some time to prepare on this issue. That is how the matter has come up for further hearing today in the Court.