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2014 (6) TMI 126 - AT - Central ExciseProcess that amount to manufacture or not - cutting and slitting of jumbo rolls or log rolls of self adhesive rolls of Chapter 48 and 85 - Held that:- cutting and slitting of a product from jumbo rolls into smaller sizes would not amount to manufacture. In S.R. Tissues Pvt. Ltd's case [2005 (8) TMI 111 - SUPREME COURT OF INDIA], it is also held that the value addition cannot be a criterion for concluding that whether a new product has emerged or not with a distinct character, name or use. There is a third schedule to the Central Excise Tariff Act, wherein a large number of items have been listed and in respect of these items, the activity of labeling, relabeling, packing or re-packing or adoption of any other treatment to render them marketable are deemed as ‘manufacture' under Section 2(f) of the Act. CETH 4811 and 8546 have not been specified in the said Schedule even though similar products falling under CETH 4816, 4818, 8536, 8539, etc. figure in the said Schedule. If the legislature intended the process of cutting and slitting to be amounting to manufacture, then CETH 4811 and 8546 should also have been included in the said Schedule. Further, in various Chapter Notes in the Tariff, wherever the legislature intended cutting and slitting to be amounting to ‘manufacture', specific notes were provided. In the present case, in respect of CETH 4811 and 8546, no such Chapter Note exists. All these points to the fact that the legislature did not intend to treat cutting and slitting of jumbo rolls of products falling under 4811 and 8546, to smaller sizes so as to make them useable by the user as amounting to ‘manufacture' - Decided against Revenue.
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