Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2022 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (8) TMI 537 - AT - Central ExciseProcess amounting to manufacture or not - conversion of jumbo paper rolls into smaller sheet by the activity of slitting, cutting - adjudicating authority has contended that the use of the paper sheet converted from jumbo rolls is different from the paper in the paper jumbo rolls - time limitation - HELD THAT:- From Chapter Notes 13 of Chapter 48, it is clear that the process of slitting and cutting of thermal paper is amount to manufacture. However, the similar chapter note is not provided in respect of paper, which is the product in question. Therefore, in absence of the similar chapter note the slitting, cutting and conversion from bulk jumbo roll to sheet form of paper cannot be termed as manufacturing activity in terms of section 2(f) of Central Excise Act, 1944. Slitting, cutting of a already manufactured goods does not amount to manufacture as held in catena of judgments. It is settled that slitting, cutting of jumbo paper rolls to smaller sheet of already manufactured goods does not amount to manufacture - reliance can be placed in the case of COMMISSIONER OF CENTRAL EXCISE, VAPI VERSUS KNOWELL CONVERTERS [2008 (8) TMI 725 - CESTAT, AHMEDABAD] - thus, the activity of slitting, cutting in conversion of jumbo paper roll into paper sheet does not amount to manufacture. Time Limitation - HELD THAT:- The appellant have been categorically declaring their activity in each and every invoices as “Jumbo Rolls converted into small rolls and small Rolls to Sheet, does not amount to Manufacture as per Section 2(f) of Central Excise Act, 1944 hence, no duty is leviable”. The appellant had a bonafide belief that the activity of conversion from jumbo paper rolls to paper sheet is not amount to manufacture, therefore, the appellant have not suppressed the fact or misdeclared with intend to evade payment of duty. Therefore, the entire demand which is raised beyond the normal period is also hit by limitation. The demand raised by the adjudicating authority is not sustainable on merit as well as on limitation - Appeal allowed.
|