TMI Blog2011 (2) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... cutting of jumbo rolls of plain tissue paper/aluminium foil is not treated as a manufacture - mere mention of the product in tariff heading does not necessarily implies that the said product was obtained by process of manufacture. Aluminium foil is cut to size in a continuous process and it does emerge as a new commodity and hence it is not excisable. - CENTRAL EXCISE APPEAL NO.139/2005 - - - Dated:- 2-2-2011 - CORAM-J.P.DEVADHARJ AND MRS.MRIDULA BHATKAR , JJ Mr. A.S.Rao a/w Mr. S.D.Bhosale for applellant Mr. V. Sridharan a/w Mr. Prakash Shah i/b P. D. S. Legal for Respondent JUDGMENT (Per Mrs. Mridula Bhatkar, J.) This appeal was admitted on the following questions of law. 1 Whether in the facts and circumstance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee paid excise duty on cut to shape/embossed aluminium foil @ 20%as per tariff heading 7607.30 and 7607.20. The Assistant Commissioner vide order dated 1/7/1994 held that the aluminium foil cut to shape/embossed which is used for packing cigarettes does not amount of manufacture and accordingly returned the classification list submitted by the assessee. Being aggrieved by order dated 1/7/1994 the appellant preferred an appeal before the Commissioner of Central Excise (Appeals) who dismissed the said appeal by order dated 9/3/1999. Being aggrieved by the said order of the Commissioner of Central Excise the appellant filed appeal before the CESTAT and the said appeal was also dismissed by order dated 19/5/2005 by the CESTAT. Hence the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the cigarettes packet is not dutiable commodity. He further submitted that a foil is a barrier for moisture and so it is used to protect the cigarettes from moisture. 6 The learned counsel in support of his submissions relied on the judgment of the Apex Court in Commissioner of Central Excise New Delhi Vs.S.R.Tissues Pvt. Ltd.2005(186) E.L.T.385 (S.C.). However, the learned counsel for the appellant Department controverted and submitted that the ratio of the Apex Court in respect of aluminium foil is not applicable to the present set of facts. In that case the tissue paper was cut and slit into various shapes and sizes from a jumbo roll of tissue paper. In the present case the aluminium foil and paper backing is not only cut to pieces ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is embossed on it. Thereafter fixed number of 10 or 20 cigarettes are wrapped in the foil and the said wrapped cigarettes are inserted in the cigarettes packet. An aluminium foil being a resistant to moisture is used as a protector for the cigarettes and to keep them dry. The word PULL is embossed with a view to make it convenient for the user and to know from which side a cigarette can be taken out. Thus, it shows that cutting and embossing do not transform aluminium foil into a distinct and identifiable commodity. That does not change the nature and substance of the aluminium foil. It does not render any marketable value to that piece of paper. Cutting to the size and embossing is only for making it usable for the purpose of packing. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e cut in various shapes and sizes. However, it was held that mere mention of the product in tariff heading does not necessarily implies that the said product was obtained by process of manufacture. The submissions of Mr.Rao that the present case is distinguishable from this case (S.R.Tissues) is not correct and cannot be accepted. There is nothing on record to suggest that the cut to shape/embossed aluminium foils used for packing cigarettes is a distinct marketable commodity . Neither the appellant nor any one else is said to have been marketing cut to shape/embossed aluminium foils. 11 Hence the view taken by the Asstt. Collector of Central Excise as also the CESTAT that embossing on foil and cutting to shape and size during the proce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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