TMI Blog1978 (1) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... of the said notification. On the basis of the said audit objection a demand was raised on 20-6-1969 for Rs. 98,595/-. Since the petitioner resisted the demand a show cause notice was issued on 20-6-1969, in terms of Section 28(1) of the Customs Act, 1962 to show cause why the said sum of Rs. 98,594.64 being the duty short levied should not be collected. The petitioner submitted its explanation on 28-6-1969. In the explanation the petitioner stated that in paper making industry the manufacturing process is complete only when the paper is rolled out and cut to marketable sizes and that therefore the paper cutting machine should also be treated as a paper making machinery. The Assistant Collector of Customs ultimately passed an order under Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to sizes required by them and they cannot be regarded as part of the paper making machinery, and therefore, they are not eligible for concessional assessment under Notification 18 of 1961 which applies only to paper making machinery. The validity of the said decision of the Government of India, the first respondent herein, has been challenged by the petitioners in this writ petition. 3. The petitioner's contention is that the process of manufacturing paper continues right up to the stage when it is made marketable and that the paper manufactured by them as coming out of the paper making machinery is not capable of being sold as it is, that it can be sold only after it is cut to sizes, and that therefore, the cutting machinery also should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shipment to customers. But the above passage does not indicate as to whether cutting is part of paper making. Even assuming that the word 'making' can be understood as meaning 'manufacturing', it is still doubtful whether the paper cutting machine can be brought in as a paper making machinery. It was held in Gamble v. Jordan, 1933 K.B. 149, that the true meaning of the word `make' or `manufacture' was `to bring into being'. In Coleburn and Sons Ltd. v. Blond, 1950-2-A.E.R. 351, Denning L. J. dealing with the liability of certain transactions of purchase under the Finance Act of 1946 said - "In order that a process of manufacture should attract purchase tax, it must be 'applied so as to make goods or in the course of the making goods'. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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