2004 (3) TMI 708 - AT - Central Excise

Summary

Issues: Determination of whether cutting and slitting jumbo rolls into smaller sizes for use in fax machines amounts to manufacture under Central Excise Tariff sub-heading No. 4823.19.

Analysis:
1. The case involved the importation of jumbo rolls of a specific size, which were then processed by cutting and slitting into smaller sizes suitable for use in fax machines.
2. The Assistant Commissioner of Central Excise initially held that the process constituted manufacture, attracting duty under a specific sub-heading of the Central Excise Tariff.
3. However, the Commissioner (Appeals) overturned this decision, ruling that cutting and slitting did not amount to manufacture, leading to the current appeal.
4. The Tribunal referred to a previous case involving the conversion of typewriter/telex ribbons into spools, where it was held that such a process resulted in a new and distinct product, constituting manufacture.
5. The Tribunal distinguished a High Court decision related to cutting paper into suitable sizes, emphasizing the creation of a new commodity through the processing.
6. The Tribunal upheld the duty demand on typewriter/telex ribbon printing spools in the previous case, establishing a precedent for similar situations.
7. The Tribunal found that the goods processed by the appellants were transformed into "Thermal Paper Rolls for Fax Machines," indicating a change in the commercial identity of the product, meeting the criteria for manufacture.
8. Relying on the precedent set in the Kores India Ltd. case, the Tribunal set aside the Commissioner (Appeals) order and allowed the appeal, confirming that the process undertaken by the appellants constituted manufacture under the Central Excise Tariff.

This detailed analysis of the judgment highlights the key arguments, precedents, and findings related to the determination of whether the processing of jumbo rolls into smaller sizes for fax machines amounts to manufacture under the Central Excise Tariff.