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2010 (8) TMI 2 - SUPREME COURT
Manufacture - after cutting and stitching the tarpaulin fabric - fixing the eye lets - section 2(f) - whether the tarpaulin made-ups which are prepared after cutting and stitching the tarpaulin fabric and fixing the eye-lets would involve the process of manufacture and, hence, would fall within the definition of 'manufacture' - Held that: - It is not in dispute nor it can be disputed that Tarpaulin made ups are covered under sub-heading 63.01 CETA Schedule. - It is now well settled that merely because certain article falls within the Schedule, it would not be dutiable under the Excise Law, if the said article is not 'Goods' known to the market. - The process does not bring into existence a new and distinct product with total transformation in the original commodity. The original material used i.e., the tarpaulin, is still called tarpaulin made-ups even after undergoing the said process. Hence, it cannot be said that the process is a manufacturing process. Therefore, there can be no levy of Central Excise duty on the tarpaulin made-ups. The process of stitching and fixing eyelets would not amount to manufacturing process, since tarpaulin after stitching and eyeleting continues to be only cotton fabrics. The purpose of fixing eyelets is not to change the fabrics.