1997 (12) TMI 110 - SC - Central Excise

Whether printing on glass bottles amounts to manufacture within the meaning of Section 2(f) of the Central Excise Act, 1944?

Held that:- It is useful to refer to the tariff description in Item No. 23A of the Central Excise Tariff. The general description of the item is `glass' and `glassware'. There are four categories namely, (1) flat-glass (2) laboratory glassware (3) glass shells, glass globes and chimneys for lamps and lanterns and (4) other glass and glasswares including tableware. Admittedly, the bottles whether printed or not fall under category (4) mentioned above. If the contention of the Revenue is accepted it would lead to double taxation under the same tariff item. While at the gate of the main factory duty is leviable on the plain bottles under 23A(4), once again duty will be leviable on the printed bottles after the process of printing is over in the premises where such printing is carried out. Such duty will undoubtedly be on the value of the printed bottles which will include not only the cost of manufacture of the bottles but also the cost of printing charges. The Revenue cannot be permitted to levy duty twice on the same item when there is no warrant therefor in the relevant provisions of the Act.

Appeal allowed of assesse. No difficulty in holding that the view taken by the Appellate Tribunal is erroneous inasmuch as the process of printing is being carried out in a separate premises as found by the Tribunal and such process is not `manufacture' within the meaning of the Act.