PLASTIC WEAVE INDUSTRIES Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) When the petition for stay came up for hearing, we find that the appeal itself can be disposed of as the issue raised herein is covered by the ratio of our decision in Final Order Nos. 292 to 302/2004 -NB(A), dated 2 -4 -2004. We, therefore, exempt the condition for pre -deposit and proceed to dispose of the appeal.

(2.) The appellants are engaged in the manufacture of HDPE/PP fabrics and sacks falling under sub -heading Nos. 3926.90 and 3923.90 respectively of the schedule to the Central Excise Tariff Act, 1985. The final products manufactured are sold at the factory gate and fabrics are also stock transferred to godown of the appellants after payment of duty for further use in the manufacture of sacks by other petty manufacturers on job work basis. The dispute in this case relates to the valuation of fabrics stock transferred by the appellants on payment of duty to their godown, which in turn were converted, into sacks before they are sold. The Revenue contended that the fabrics removed to the godown of the appellants are to be valued on the basis of the selling price of the sacks from the godown. Identical issue came up for consideration in the above mentioned Final Order dated 2 -4 -2004, wherein we took the view that conversion of the fabric into sack, even if, involves manufacturing process, the job -worker is carrying on the manufacturing process. Under these circumstances the demand raised against the appellant cannot be sustained. We therefore, set aside the order impugned and allow the appeal.