RASMI WAX COATED PAPER AND Vs. CCE

JUDGEMENT

(1.) The issue involved in these appeals is whether the process undertaken by the appellants for cutting, slitting and printing of Cork Tipping Paper amounts to manufacture within the meaning of Section 2(f) of the Central Excise Act, 1944.

(2.) The appellants are manufacturers of Printed Cork Tipping Paper. They are receiving cork tipping paper in rolls from M/s. ITC Ltd. Calcutta on behalf of M/s. VST Ltd. Azamabad. They are converting cork tipping paper rolls into printed cork tipping paper bobbins through the processes like printing, etc. They have not filed any declaration with the Department regarding classification of the product prior to 6.8.1998, when they filed a declaration under Rule 173B classifying the printed cork tipping paper under Chapter Sub Heading 4901.90 as printed articles of paper. A Show Cause Notice was issued to them demanding duty of Rs. 79,49,652/ - on the printed cork tipping paper manufactured and cleared during the period from 11/94 to 7/99 besides proposing to impose penalty and charging interest. They were also issued another Show Cause Notice covering the period 8/99 to 12/99, which is covered by the impugned order of the Commissioner.

(3.) The Commissioner, in his order, held that the process of printing and slitting of cork tipping paper, wound on bobbins is a new commodity and the process amounts to manufacture within the Section 2(f) of the Central Excise Act. He accordingly confirmed the demands and imposed penalty.