Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2021 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (6) TMI 714 - AT - Central ExciseProcess amounting to manufacture - baby diapers - sanitary napkins - transformation of supplied material into marketable packages necessary for commercial acceptance - N/N. 4/2006-CE dated 1st March 2006 - HELD THAT:- It is apparent from the schema of ‘deemed’ manufacture that emergence of goods of another description from any process to which the enumerated goods are subjected to would take it outside the scope of ‘deemed’ and requiring conformity with the general comprehension of ‘manufacture’ or be ‘incidental or ancillary to the completion of a manufactured product’ in section 2(f) of Central Excise Act, 1944. It is not the case of Revenue that the impugned goods, before or after repacking, are not ‘baby diapers’ or ‘sanitary napkins’ but that they do correspond to the description in serial no. 55 of the Third Schedule to Central Excise Act, 1944 - As ‘baby diapers’ or ‘sanitary napkins’ are not enumerated in the Third Schedule to Central Excise Act, 1944, their incorporation in notification no. 4/2006-CE dated 1st March 2006 does not suffice for excisability under ‘deemed’ manufacture to be invoked. It offends the validity of a tax demand to be founded on a judgement except for the dispute that it purports to resolve; only the relevant statute, subject to judicial interpretations of such, can save a demand. Even less so is a random culling in which the issue, as well as the resolution, has been carefully obscured - For the impugned order to appropriate that logic for the proposition that the essence of marketability afforded by a process suffices, and to the exclusion of any or all other conditions in a statute, for goods to be deemed to have been ‘manufactured’ is but semantic contortion for enabling overreach by the tax administrator. The ‘baby diapers’ and ‘sanitary napkins’ are not ‘cleansing or facial tissues, handkerchiefs and towels of paper pulp, paper, cellulose wadding or webs of cellulose fibres’ in the Third Schedule to Central Excise Act, 1944 - demand set aside - appeal allowed - decided in favor of appellant.
|