TMI Blog2023 (7) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... Notes of the First Schedule to the Central Excise Tariff Act, 1985? - HELD THAT:- In the instant case, the Appellant purchased Jumbo Paper Rolls from traders as well as from manufacturers. The raw material, i.e. Jumbo Paper Rolls cannot be used in the same roll form for use as Writing Paper. It needs to be cut into smaller size, may be ruled or not, depending upon its end use, and organized into set of papers for selling in retail market. The Appellant with the aid of machines cut those rolls into different sizes - the activities undertaken by the appellant does not change the nature of paper. It does not bring a new commodity with a distinct name, character and use. The writing paper remains as writing paper only, even after cutting. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MEMBER (JUDICIAL) AND MR. K. ANPAZHAKAN MEMBER (TECHNICAL) Shri Aditya Kumar Maheshwari, Shri Avijit Ghosal Ms. Nitu Agarwal, all Chartered Accountants for the Appellant Shri S. S. Chattopadhyay, Authorized Representative for the Respondent ORDER The Appellant is a partnership firm engaged in production of two commodities, namely Notebooks and Exercise Books and Writing and Printing Paper Sheets falling under Chapter Heading Nos. 4820 and 4820 respectively. During the period 2010-11 to 2013-14, the Appellant availed the benefit of exemption Notification 8/2003 dated 01.03.2003 and cleared the above said goods without payment of duty. The department alleged that the Appellant has treated the manufacture of writing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eets through cutting is a process amounting to manufacture as defined under Section 2(f) of the Central Excise Act, 1944. 4. Thus, the first issue to be decided in these appeals is whether the process adopted by the Appellant amounts to manufacture or not, as per the definition of manufacture as defined in section 2(f) of the Central Excise Act, 1944 read with the Section and Chapter Notes of the First Schedule to the Central Excise Tariff Act, 1985. It is observed that Paper and paperboard falls under chapter 48 of the said Tariff. Jumbo Paper Rolls being the raw material of the Appellant falls under subheading No. 4802. 6190 and their final product Writing and Printing paper sheets falls under a different sub-heading namel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of any new product. (ii) The very nature of paper as Writing and Printing Paper does not changes as the paper in rolls are equally fit to be use for printing. (iii) The usage of terminology like dista paper to prove that new item is manufactured is bereft of logic as Dista Paper is commonly used for Writing and printing Paper in Bengali Language. The change of name due to change of language do not lead to generation of any new product. (iv) The usage of terminology like unstitched exercise book is ill intended to prove that a new item is being manufactured. There is no product which is called as Unstitched Exercise Book . (v) Writing paper cannot be bifurcated into different products based on language to be written of Pap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner of Central Excise, Delhi-III 2014(9) TMI 862-CESTAT New Delhi wherein it was held that; Inasmuch as the identical product is involved in the present appeal also, by following the earlier decision, we hold that by cutting/slitting the jumbo rolls of paper and by placing the carbon paper in between two layers of the paper with the side punching would not amount to manufacture inasmuch as paper remain paper. 7. The Appellant further contended that extended period of limitation cannot be invoked since there was no willful suppression or misdeclaration in the instant case. They were always under the bona fide belief that the activities carried out by them did not amount to manufacture. Further, the department has failed to adduce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Which, in relation to the goods specified in the Third Schedule, involves packing or repacking of such goods in a unit container or labeling or re-labeling of containers including the declaration or alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer Cutting of paper rolls into sheets does not lead to generation of any new product. 13. We observe that the activities undertaken by the appellant does not change the nature of paper . It does not bring a new commodity with a distinct name, character and use. The writing paper remains as writing paper only , even after cutting. 14. We observe that Hon ble Supreme Court has decided a similar issue in S.R. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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