SUPER POLYFABRIKS LTD Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) THE above two appeals were heard together since the issues raised were common in both the appeals. They are being disposed of by this common order. We have heard Shri G. Shiv Das and Shri M.P. Devnath, Advocates for the appellants and Shri Sumit K. Das, ld. JDR for the respondent Collector.

(2.) BRIEF facts are : M/s. Super Poly Fabrics Ltd. as well as M/s. Fine Fabricators are manufacturers of HDPE bags and sacks falling under Chapter Heading 39 of the Central Excise Tariff Act, 1985. They paid Central Excise duty at the time of clearance of bags and sacks. They also availed the benefit of SSI exemption Notification No. 1/93.

(3.) ACCORDING to the Appellants, M/s. Fine Fabricators (FF for short) send HDPE granules to M/s. Super Poly Fabrics Ltd. (SPF for short) for the manufacture of fabrics on job work basis in terms of Notification No. 83/94 and 84/94 -CE as per declaration filed by them. SPF in turn convert the granules into fabrics and send them back to FF who thereafter manufacture sacks out of the said fabrics. According to the appellants, during the manufacture of sacks, strips emerged at the intermediate stage as an inevitable consequence.