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1990 (12) TMI 76 - SC - Central ExciseWhether the kraft paper marketed by the company is bituminised water-proof packing paper, polythene-lined kraft packing paper etc. and as such were different and distinct products than the original kraft paper purchased by the company? Held that:- Once we hold that the coating and lamination and other process applied by the company in its factory amounts to manufacture, new products come into being. It does not remain an ordinary kraft paper and as such it is liable to excise duty of 40% ad valorem as provided, under Central Excise Tariff Item No. 17(2). The entire case before the Assistant Collector was understood and argued on the basis of controversy regarding manufacture. Once it is held that the products which come into being are manufactured from kraft paper, then in the facts and circumstances of this case there can be no controversy that new goods come into being and they are sold in the market as distinct, separate and different goods. In the result we allow this appeal, set aside the order of the High Court and uphold the order of the Assistant Collector who held that the processed kraft paper had a definite characteristic, use and value and as such they are different products and are liable to payment of excise duty.
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