TMI Blog1980 (8) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... ng such bitumenised waterproof paper, the base paper viz, the kraft paper is subjected to various processes and treatment. Accordingly to the petitioners, no excise duty was being levied on bitumenised waterproof paper till 27-5-1976. On 27-5-1976 the Government of India issued notification M.F. (D.R.B.) No. 184/76-C.E. By this notification the Government of India fixed the duty at 12 1/2% for the bitumenised waterproof paper under entry 17(2) of the first schedule to the Act. Consequently, the petitioners have filed these writ petitions for the issue of a certiorari fied mandamus forbearing the respondents from collecting excise duty on the bitumenised waterproof paper as per notification dated 27-5-1976 and for quashing the notification d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he petitioners can be said to be manufacturing paper within the meaning of entry 17(2) of the First Schedule to the Act. By treating kraft paper,with bitumen the kraft paper does not lose its essential character as kraft paper. The identity remains the same even after it being treated with bitumen. Consequently it cannot be said that a manufacture is involved in the process of treating kraft paper with bitumen. In other words, the process does not involve a change in the character of paper and transform it into another product which can be described as a manufacture of some other product. In S.B. Sugar Mills v. Union of India - (AIR 1968 SC 922 = 1978 E.L.T. is 336) the Supreme Court observed as follows with reference to the meaning of 'man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ute cloth or jute fabric with a solution would not change the character of the product and transform it into another product which can also be described as a new manufacture of jute goods. It is undoubtedly a manufacture of new goods or new kinds of goods but it is not a manufacture of jute goods. What is, therefore, being charged under the impugned notice of demand being the difference in weight of the laminated jute goods and the rate jute goods, is the weight of the materials used for lamination, that is, polythene, gum tape and other adhesive materials used for making the coating. No duty is chargeable on such materials. The authorities are trying to do indirectly what they could not do directly namely charge excise duty on articles use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of a paper which is already manufactured was a process in the manufacture of paper. The petitioner before the Gujarat High Court was a firm doing business of printing on papers. It purchased paper manufactured by manufacturers and coloured or printed on one side of the paper. Because of the colouring or printing on one side of the paper, the Excise authorities demanded payment of duty in accordance with Tariff Item 17 of the Act. Obul Reddi, C.J. observed as follows : "What Mr. Vakharia appearing for the respondents contends is that the colouring process of the paper purchased by the petitioner would come within the sweep of 'all other kinds of paper occurring in Tariff Item 17(3) refers to 'all other kinds of paper manufactured'. Colouri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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