ASMACO INDUSTRIES LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) The application for waiver of pre -deposit of duty of Rs. 2,77,013.44 and penalty of Rs. 20,000/ - arises out of the order of the Commissioner (Appeals) who has upheld the Assistant Commissioner's order confirming duty and imposing penalty on the ground that the process undertaken by the applicants of cutting and slitting of imported jumbo rolls of adhesive plastic and aluminium foil amounts to manufacture and the products, namely, protection tape and aluminium tape fall for classification under CETA sub -headings 3919.00 and 7607.60 respectively attracting duty at the appropriate rate.

(2.) On hearing both sides and noting that unlike in Chapter 48 of the Central Excise Tariff Act, where Note 10A creates a deeming provision that process of slitting or cutting of thermal paper amounts manufacture, there is no such note either in Chapter 39 or Chapter 76 and further noting that the Tribunal has taken a view in some cases that such activity does not amount to manufacture so as to give rise to duty liability. We, therefore, hold that strong prima facie case for waiver has been made out and accordingly dispense with the pre -deposit of duty and penalty and stay recovery thereof pending the appeal.