TMI Blog1985 (6) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... eparation of cigarettes, cigars, cheroots, biris, cigarette or pipe or hookah tobacco, chewing tobacco or snuff; (ia) in relation to manufactured tobacco, includes the labelling or relabelling of containers and repacking from bulk packs to retail packs or the adoption of any treatment to render the product marketable to the consumer." Thus in the case of manufactured tobacco or cigarettes, re-labelling of containers and re-packing from bulk packs to retail packs or the adoption of any treatment to render the product marketable to the consumer is deemed to be included in the concept of "manufacture" and is deemed to constitute a part and parcel of the process of "manufacture". 2. By Notification No. 201 of 1979 dated 4th June 1979, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons with regard to specific (inputs) namely, tear tape, slides, shells and printed cartons i.e. outers/blanks used in the packing of cigarettes and these (inputs) were accepted by the respondents as necessary (inputs) in the manufacture of cigarettes. The company was accordingly availing of the set-off under the aforesaid notification. However, and for the first time, by his letter of 10th June 1981, the third respondent informed the company that the packing material viz., tear tape, slides, shells and printed cartons i.e. outers/blanks used in the packing of cigarettes could not be called 'inputs' and that the company could not avail itself of the set-off procedure under the notification and credit under the set-off procedure was disallowe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tently paying excise duty on the entire product which includes not merely the bare cigarettes but also tear tape, slides, shells and printed cartons i.e. outers/blanks used in the packing of these cigarettes and utilising which materials the product is ultimately rendered marketable to the consumer. And, what is more, credit was in fact also being consistently given to the company accordingly without demur. However, much later in June 1981 the excise authorities have had second thoughts resulting in this petition. 6. There is no dispute here that in the manufacture of the goods involved Tariff Item No. 68 goods have been used. There is also no dispute that the declarations accordingly made have been accepted by the authorities and credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive thereof. The interpretation put by the authorities on the said word is too narrow and technical defeating the very object of the notification and running counter thereto. Reading the said notification as a whole, it is obvious and clear that a much wider meaning to the word 'inputs' is intended. It is not used as the grammatical equivalent of or otherwise synonymous with the word 'ingredients'. The effort to equate the two would render the notification to a great extent infructuous and nugatory. Indeed, the notification itself clarifies the word (inputs) to mean : "...any goods falling under Item No. 68." The sum and substance is to enable manufacturers to claim credit for all Tariff Item 68 goods that go into the manufactured prod ..... X X X X Extracts X X X X X X X X Extracts X X X X
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