TMI Blog1990 (11) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioner to take out a Central Excise licence stating that the process of slitting and cutting of jumbo roll films into smaller sizes would amount of to "manufacture". While the petitioner was agitating the validity of this direction by the third respondent, the Central Board of Excise and Customs (second respondent) issued a clarification in their letter F. No. 11/1/88 CX. 3, dated 5-9-1988. The second respondent clarified that the process of cutting into smaller sizes and repacking of jumbo rolls of sensitised photographic paper on which the customs duty including C.V. duty was paid would not amount to "manufacture" for the purpose of levying Central Excise duty. In view of this clarification, the direction given by the third respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .02 reads as follows : "Photographic film in rolls, sensitised, unexposed, of any material other than paper, paperboard or textiles; instant print film in rolls, sensitised, unexposed." 5. It was the case of the second Respondent-Board that since manufacture of photographic films in rolls (jumbo rolls) fall under Tariff Entry 37.02 and is attracted to Central Excise duty at the rate prescribed for that Entry, yet, for photographic films of the description mentioned in Tariff Entry 37.01, separate rate of duty prescribed and hence, when jumbo roll films are converted into photographic plates and films in flat form, the petitioner who so converts the jumbo films can be held to be engaged in a process of 'manufacture' and in that event, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of perforation also cannot be treated as a process of manufacture since the cinematographic films in question will remain cinematographic films only both before and after perforation. You are advised to take suitable action in accordance with the above guidelines with regard to assessment of the goods in question." He would contend that the second respondent-Board as well as the Ministry were of the confirmed view that not only the process of slitting into required width, but also cutting into required length would not amount to a process of 'manufacture' for the purpose of levy of Central Excise duty. He would state that the above view has stood the test of time for a consideration period. However, by the subsequent clarification dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e remedy being efficacious should not be allowed to be by-passed. He would further contend that the petitioner engages itself in a process of manufacture because it is converting jumbo rolls which are identifiable as a separate commodity into a distinct and different commodity known in the market as flats and therefore, the clarification given by the second respondent-Board is correct. 8. Since the writ petition has already been admitted and has been kept pending for nearly a year, it would not be fair to dismiss the writ petition on the ground that the petitioner should exhaust the alternative remedy by appealing before the Appellate Collector or Tribunal. The matter for decision does not involve any complicated question of fact. 9. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y from one produce to another and there could be several stages of processing and different kinds of processing depending upon the utility for which the end product is meant. Any process if it is incidental and ancillary to the completion of manufactured product, it will certainly amount to 'manufacture' within the meaning of Section 2(f) of the Central Excise Act." It is, therefore, obvious that as commonly understood the word 'manufacture' would mean a process, the end result of one or more process through which the original commodity is made to pass, resulting in a distinct and different commodity. 11. Deciding in the light of the law so laid down, is would be inconceivable to conclusion that mere cutting of jumbo roll films into sim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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