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TMI Blog2023 (7) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 and printing paper' as 'trading' activity and did not include their value in the total value of clearances, for the purpose of availing the said exemption. Accordingly, it was alleged it resulted in non levy of central excise duty of Rs 74,90,183/- for the said period. 2. A show cause notice dated was issued to the Appellant demanding duty of Rs.74,90,183/-. The said Notice was adjudicated and the demands in the Noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hedule 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 namely sub-heading No. 4802.6990. 5. 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 wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o 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 Paper. (vi) The impugned orders have failed to prove that a new product has been manufactured owing to cutting of Paper. (vii) Reliance is placed on the judgement of Hon'ble Supreme Court in the matter of S.R. Tissues (2005) wherein the Hon'ble Apex Court has held that the process of cutting/slitting of Jumbo Roll of Plain Tissue Paper into smaller size will not amount to man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g 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 any evidence that the Appellants had made any effort to conceal their activities. Accordingly, they contended the demand raised by invoking extended period not sustainable. 8. The Ld. A.R. reiterated the findings in the impugned orders. 9. Heard both sides and perused the appeal records. 10. We observe that the issue to be decided in these appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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. Tissues (2005) wherein the Hon'ble Apex Court has held that the process of cutting/slitting of Jumbo Roll of Plain Tissue Paper into smaller size will not amount to manufacture as defined in Section 2(f) of the Central Excise Act, 1944. 15. We observe that the decision in the case of S.R Tissues squarely cover ..... X X X X Extracts X X X X X X X X Extracts X X X X
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