TMI Blog1989 (7) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... respondent and considered the appeal memorandum, written submissions/arguments and the other papers filed before us. 2. The facts of the case, in brief, are that the appellants received duty paid kraft paper from some of their clients, viz., M/s. Century Rayon and M/s. Swastik Household Industrial Products for manufacture of Corrugated Board and Corrugated Board Boxes on job work basis. The kraft paper received by them were classifiable under Tariff Item 17 and the kraft board and kraft board boxes manufactured by them were assessable under Item 68 of the Central Excise Tariff. They were paying Central Excise duty on these boards and boxes under Tariff Item 68 as distinct new products were manufactured by them. They claimed the benefit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty value of materials should be included for calculating the value under Section 4 of the Central Excises Salt Act in respect of corrugated board and corrugated board boxes. In support of this argument, he relied on the judgment of Madras High Court in the case of Madura Coats Ltd. v. Superintendent of Central Excise and Two others, reported in 1982 (10) E.L.T. 370 (Mad.) and also the Larger Bench decision of this Tribunal in the case of National Organic Chemical Industries Ltd. v. Collector of Central Excise reported in 1985 (21) E.L.T. 252 (Tri.). 4. In the judgment mentioned above, the Hon ble Madras High Court has held that if the material supplied by the Customer to the job worker loses its identity during the manufacturing proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 Others, reported in 1989 (20) ECR 460 (Bombay), in which it was held that Notification No. 119/75-C.E., would apply in the case of job work even if the end-product of the manufacturing process was different from the material used at its commencement. The judgment of Bombay High Court is contrary to the judgment of Madras High Court. Following the ratio laid down by the Larger Bench of the Tribunal in the case of Atma Steels Pvt. Ltd. (supra) and in paragraph 26 of the Larger Bench decision in the case of National Organic Chemicals Industries case (supra), we prefer to follow the judgment of Madras High Court referred to above. 6. In the present case, completely different products, viz., corrugated board and corrugated board boxes, were ..... X X X X Extracts X X X X X X X X Extracts X X X X
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