TMI Blog2016 (6) TMI 1055X X X X Extracts X X X X X X X X Extracts X X X X ..... PP film, polyester film and other inputs used in making printed laminated sheets was sought to be recovered alongwith the interest by way of issue of a shoe cause notice. Held that:- the appellant after printing and laminating the wrappers are to be used packing the biscuits manufactured by the appellant only - the activity of printing/laminating of BOPP films which were used as laminated wrapper for packing of biscuits by the appellant shall amount to manufacture. Therefore, the appellant has rightly availed the credit on BOPP films and other inputs used in making printed laminated sheets. In these circumstances, the appellant has correctly taken the credit. - Demand set aside - Decided in favor of assessee. - E/1857/2012-EX(DB) - Fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inputs used in making printed laminated sheets was sought to be recovered alongwith the interest by way of issue of a shoe cause notice. The matter was ultimately adjudicated and impugned order has been passed demanding duty on account of reversal of credit on the said with interest and equal amount of penalty was also imposed. Aggrieved with the said order, the appellant is before us. 3. Learned Counsel for the appellant submitted that issue involved in the matter is whether the activity of printing and laminating of a plain polyester film amounts to manufacture or not? The said issue came up before the Apex Court in the case of CCE, Mumbai-IV vs. Fitrite Packers -2015 (324) ELT 625 (SC) wherein it has been held that the activity of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case set out in that case are as under: The respondent/assessee herein purchased GI paper from the market which is already duty paid base paper. On this paper, the process of printing is carried out by the assessee according to the design and specifications of the customers depending on their requirements. This printing is done in jumbo rolls of GIP twist wrappers. Bulk orders are received from Parle, which needs the said paper as a wrapping/packing paper for packing of their goods. On the paper, logo and name of the product is printed in colorful form. After carrying out the printing as per the requirement of the customers, the same is delivered to the customers in jumbo rolls without slitting. The issue is as to whether this printing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss, such goods being marketable as such. It is in this category that manufacture of goods can be said to take place. 10. On the facts of the present case, it is to be determined as to whether the case would fall under category (2) or category (4). We have already taken note of printing process. A cursory look into the same may suggest, as held by the Tribunal, that GI paper is meant for wrapping and the use thereof did not undergo any change even after printing as the end use was still the same, namely, wrapping/packaging. However, a little deeper scrutiny into the facts would bring out a significant distinguishing feature; a slender one but which makes all the difference to the outcome of the present case. No doubt, the paper in- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earlier, then such process would amount to manufacture irrespective of whether there was a single process or several processes. 10. Admittedly, in this case, the appellant after printing and laminating the wrappers are to be used packing the biscuits manufactured by the appellant only. We find that the activity of printing/laminating of BOPP films which were used as laminated wrapper for packing of biscuits by the appellant shall amount to manufacture. Therefore, the appellant has rightly availed the credit on BOPP films and other inputs used in making printed laminated sheets. In these circumstances, the appellant has correctly taken the credit. Consequently, the impugned proceedings are not warranted against the appellant. Therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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