TMI Blog2000 (6) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... rolls to 35 mm to size, cut them to suitable lengths, and then wound them in the reels etc. provided by the appellants themselves. Thereafter, the goods are returned to the appellants premises where they are subject to the following :- (a) random testing of about 10% by using Sensitometer to determine the sensitivity of the unexposed cinematographic film to ensure that the desired level of sensitivity for exposure when the said film is used has been maintained during this slitting and cutting operations. (b) Thereafter, the films are labelled and suitably packed before being sold from the ex-factory gate. 2.It is the contention of the Revenue that neither this testing nor the labelling and packing is a process of manufacture and that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition in which they are generally sold in the wholesale market at the factory gate. Ld. Advocate submits that since both the testing and labelling and further packing is necessary to make the goods saleable, therefore, these processes have to be considered as an incidental and ancilliary to the completion of the manufactured product. Therefore, the appellants clearly are manufacturers of this product and hence credit taken under Modvat scheme was rightly taken. He further submits that there is no charge that duty paid on the final product has not been rightly paid. He also submits that there is no other charge regarding any violations that the entire inputs which had gone for job work and had not been returned back to the factory and accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be cleared on payment of duty either from the premises of the job worker or from the premises of the appellants. If the goods can be cleared from the job worker premises, they can as well be also cleared on payment of duty from the appellants factory. In fact, when the goods are cleared on payment of duty at the appellants factory gate, the quantum of duty is increased due to value addition. Therefore, to that extent, the procedure that had been followed by appellants has only resulted in Revenue gain to the department. 6.Ld. DR Shri M. Kunhikannan relies on the findings of both the original authority as well as the ld. Commissioner (Appeals). He submits that since there is no chapter notes in the relevant Chapter 37 in the Central Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufactured are of sensitive nature which cannot be even exposed to sunlight. Merely because the test results of the said quality control showed that there was no rejection, that by itself would not lead to the logical conclusion that such testings were not required at all. At best, the only conclusion would be high quality of the job work done by the job worker. Further, the goods are such that a customer who has to buy them cannot open them in sunlight to see what it inside. Therefore, in this context, the label affixed on the container declaring the technical specifications of the unexposed cinematographic film contained inside becomes absolutely necessary before the same could be marketed. 8.We also find great force in the submission ..... X X X X Extracts X X X X X X X X Extracts X X X X
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