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TMI Blog1989 (8) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... arji, J.]. - These appeals are at the instance of the revenue under Section 35-L of the Central Excises and Salt Act, 1944 (hereinafter referred to as `the Act'). Civil Appeal No. 1589 appeal arises out of Order No. 5 of 1988-A passed by the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi (hereinafter referred to as 'the Tribunal'). 2. The respondent used to manufacture different varieties of printing paper including wrapping paper falling under Item No. 17(1) of the erstwhile Central Excise Tariff in their factory at Bansberia, District Hubli. It is the appellant's case that the respondent had violated the provisions of Rule 9(1), Rule 173 F and Rule 173 G of the Central Excise Rules, 1944 inasmuch as they had removed 4,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Central Excise held otherwise. The respondent preferred an appeal before the Collector (Appeals), Calcutta. The respondent contended before the Collector that they were entitled to the benefit of notification and it is well settled law in view of several judgment of High Court and orders of the Tribunal that wrapping of paper was a process incidental or ancillary to the completion of manufacture of paper, as the printing and writing paper could not be sold in the market without being packed and wrapped by wrapping paper. The Collector (Appeals), however, rejected the claim to exemption in respect of such wrapping paper in terms of the proviso to Rule 9(1). There was an appeal to the Tribunal. The Tribunal referred to its own decision in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d before us in these appeals that in order to be non-dutiable, the wrapping paper must be either component part or raw material and must be consumed or utilised in the manufacture of the finished products. Wrapping paper cannot, it was contended, be deemed to be component part because it did not become an integral part of the packed paper. In this connection, on behalf of the revenue, learned Attorney General drew our attention to the fact that reliance had been placed on the decision of the Kerala High Court in Paul Lazar v. State of Kerala [(1977) 40 STC 437]. On behalf of the respondent, however, Shri Bajoria placed reliance on Section 2(f) of the Act which includes any process incidental or ancillary to the completion of a manufactured ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Baroda v. M/s. Ambalal Sarabhai Enterprises - 1989 (43) E.L.T. 214 (SC), judgment delivered on 10th August, 1989. The finished goods were cut-to-size and packed paper which, according to the Indian Standard and trade practice, consisted of the wrapping paper and the wrapped paper. In South Bihar Sugar Mills Ltd.'s case (supra), it was held by this Court that the duty is levied on goods. As the Act does not define goods, the legislature must be taken to have used that word in its ordinary, dictionary meaning. The dictionary meaning of the expression is that to become 'goods' it must be something which can ordinarily come to the market to be bought and sold and is known to the market as such. The Tribunal found, and there was material for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expedient, articles required in that process, would fall within the expression `in the manufacture of goods'. The Tribunal on the appraisement of all the relevant facts in the light of the principles indicated before, upheld its own decision in the case of Orient Paper Mills [1984 (18) E.L.T. 88] and in both the appeals accepted the manufacturer's contentions and dismissed the appeal. The revenue contends that the Tribunal has erred. 5. Shri Bajoria for the respondent, drew our attention to the decision of this Court in Collector of Central Excise v. Jay Engineering Works Ltd. [1989 (39) E.L.T. 169 (S.C.)]. There the respondent was the manufacturer of electric fans, and brought into its factory nameplates under Tariff Item 68 of the erstwh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , to be wrapped in paper. Anything required to make the goods marketable, must form part of the manufacture and any raw material or any materials used for the same would be component part for the end product. In our opinion, the Tribunal was right in the view it took. There is no ground to interfere in these appeals. 7. Before we conclude, we must further observe that Shri Bajoria drew out attention to the judgment and order of the Tribunal in Appeal No. ED (SB) A. No. 2734 - 83C (Collector of Central Excise v. Orient Paper Mills), where the appeal has been preferred and in the petition in appeal to this Court by the revenue under Section 35L(b) of the Act, where the question involved was whether the proforma credit under Rule 56A of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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