TMI Blog2003 (7) TMI 116X X X X Extracts X X X X X X X X Extracts X X X X ..... containing the details of the content of the compact disc was also placed in the jewel box. The whole was then shrink wrapped. The appellant thereupon sold such packed compact discs in wholesale. 2.Notice dated 12-4-2002 issued to the appellant alleged that the processes undertaken by the appellant in regard to the compact discs amounted to manufacture. It alleged that the packed compact discs were not marketable without being packed in the jewel box, as they would otherwise be subject to damage and that the insertion of the inlay card was also essential because without it the customer would not be aware of the identity of the compact disc or the nature of its contents. It, therefore, concluded that such a process amounted to manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... declaration had not been submitted to the Assistant Commissioner who was the proper officer. She therefore confirmed the demand for duty and imposed penalty on the appellant. Hence this appeal. 5. Counsel for the appellant reiterates the contention that were raised in the notice that the process that the appellant undertook was simply the one of packing of the goods and did not amount to manufacture and that the extended period of limitation will not be available to the department. The departmental representative reiterates what the Commissioner has said, that the compact discs were not marketable without being treated in the manner in which the appellant has treated them and such treatment therefore amounts to manufacture. He adds in ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rticle that is new and different from the commodity that the appellant imported has emerged as a result of the treatment that was imparted to the imported article at the appellant's hands. It continued to be a compact disc. The fact that the value addition to the compact disc does not result in the conclusion that there is manufacture. There can be value addition without manufacture and there can be manufacture without value addition - in fact in a reduction of value addition, e.g. in the case of scrap. Where it is the intention of the legislature to render liable to duty value addition that arises as a result of such treatment of goods that has been incorporated by specific notes to the sections of the tariff as provided in Section 2(f) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. The question before the Court was whether wrapping paper used by the respondent to wrap the other varieties of paper that it manufactured before their clearance would be entitled to the exemption contained in Notification 18A/83. The Supreme Court confirmed the view of the Tribunal that since the process of wrapping was incidental and ancillary to manufacture of paper, the benefit would be available. 9. It cannot be disputed that packing of the goods is incidental or ancillary to the completion of the manufactured product. That is what Section 2(f) provides. Therefore, any such activity incide ..... X X X X Extracts X X X X X X X X Extracts X X X X
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