2004 (12) TMI 228 - AT - Central Excise

Summary

Issues: The judgment involves the clearance of metallised polyester film without payment of duty.

In the case before the Appellate Tribunal CESTAT, New Delhi, the issue revolved around the clearance of metallised polyester film without payment of duty. The appellants, M/s. Kuwer Industries Ltd. & Ors., had been penalized by the Commissioner for clearing the film without duty payment, based on the premise that the process of metallisation did not amount to manufacture. The appellants argued citing a Supreme Court case (Metlex (I) Pvt. Ltd. v. C.C.E., New Delhi) that metallising duty paid film does not constitute manufacturing. The Supreme Court had ruled that laminating or metallising duty paid film does not result in a new product, and hence, does not amount to manufacture. As the process of metallisation on polyester film was deemed not to be manufacturing, the Appellate Tribunal set aside the order confirming duty payment and penalties, allowing all the appeals.