2009 (6) TMI 779 - AT - Central Excise

Summary

Issues:
1. Whether cutting and slitting of jumbo rolls and log rolls to smaller adhesive tapes amounts to manufacture.

Analysis:
The case involved a stay petition filed against the Order-in-Appeal passed by the Commissioner (Appeals), upholding the demand of duty, interest, and penalty imposed by the Additional Commissioner of Central Excise. The primary issue was whether the activity of cutting and slitting jumbo rolls to smaller adhesive tapes constituted manufacturing. The Commissioner (Appeals) relied on the Supreme Court judgment in Kores India Ltd. v. CCE, holding it to be manufacturing. However, the applicants pointed out a contradictory decision by the Commissioner of Belapur, who held that the same activity did not amount to manufacture, citing the Supreme Court judgment in C.C.E. v. S.R. Tissues and a Tribunal decision in Anil Dang v. CCE. Noting the inconsistent stand taken by the Revenue and the undue hardship it would cause to the applicants, the Tribunal decided to dispense with the pre-deposit of duty, interest, and penalty, based on the precedents of the Supreme Court and the Tribunal.

In conclusion, the Tribunal granted a stay on the recovery of duty, interest, and penalty pending the disposal of the appeal, considering the conflicting decisions and the undue hardship that would be imposed on the applicants. The Tribunal's decision was based on the interpretation of relevant legal precedents and the need to ensure fairness and justice in the proceedings.