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TMI Blog1988 (4) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture of multiple ply boards in their factory. The original authority however held in favour of the respondents and dropped the proceedings. The Collector of Central Excise, Guntur took up the matter in appeal before the Collector of Central Excise (Appeals), Madras who also held that no duty was chargeable on single ply straw boards captively consumed. His findings in this regard in paras 5 and 6 are reproduced below for ready reference :- "5. During the relevant time the tariff description under entry No. 17 of Central Excise Tariff was as under: "Paper and paper board, all sorts (including paste board, mill board, straw board, cardboard and corrugated board) and ... ... From the above description, it is clear that all sorts of paper boards including straw boards would fall under Tariff Item 17 and specifically would fall under sub-item (1) (unless such straw board is elsewhere specified, which is not the case). Therefore, the tariff description does not distinguish between single ply and multiple ply straw boards and does not prescribed any standard of thickness, before a board could be called a straw board. Therefore, straw board whether it is single ply or double ply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Paper and paper board, (including paper or paper boards which have been subjected to various treatments such as coating, impregnating, corrugation, creping and design printing), not elsewhere specified. (2) * * * * (3) * * * * He pleaded that the appellant are making paste boards from the ply straw boards. He was asked by the Bench to amplify the definition of paste boards. He cited the definition of the same given in IS: 4661 -1968. He read out the definition and for the convenience of reference the same is reproduced below :- "Paste Board - Board produced by pasting two or more formed papers with an adhesive in a subsequent operation as distinct from the material produced by pressing together in wet state without the use of an adhesive." It was pointed out to him that this definition of paste boards contemplated the pasting of a paper on the board for the purpose of making a paste board and not pasting together of single ply straw board. The learned advocate for the respondents pleaded that in terms of sub-rule (4) of Rule 49 of Central Excise Rules, the goods could be removed without payment of duty for the manufacture of other excisable goods in the same factory when both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Supreme Court did not deal with bituminised paper, but the observations in the said judgment as to whether any particular process would amount to manufacture, have been considered earlier in this judgment. It had been seen that judged by the tests laid down by the Supreme Court in the said judgment, the process of laminating two layers of paper with an adhesive between the two in order to manufacture a new commodity, known differently under a distinct name, and meant for distinct use, would amount to manufacture of a new distinct excisable commodity. Judged by the said test the process of bituminisation being carried out by M/s. United Paper Products would also amount to manufacture of a new excisable commodity i.e., bituminised paper, the process of bituminisation being carried out in order to impart additional qualities, such as strength and impermeability to water. Therefore, though the two decisions relied on by Shri Arora may have been with reference to bituminised paper, the conclusion in the said judgments cannot hold good subsequent to the decision of the Supreme Court cited supra, for the reasons more fully stated even earlier." We observe the similar question of levy of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... market. The process carried out by the respondents on such kraft paper does not amount to manufacture, and therefore, Item 17(2) is not attracted to the work undertaken by the respondents. In our judgment, the view taken by the learned Single Judge does not suffer from any infirmity as to warrant interference in this appeal." In view of the judgment of the Hon'ble Bombay High Court the decision of the Larger Bench cited by the Revenue is not binding. We observe that no contrary judgment, to that of Hon'ble Bombay High Court in the case of bituminised kraft paper has been cited before us by the Revenue. We in the circumstances are bound to follow the decision of the Hon'ble Bombay High Court for the purpose of coming to our finding in the present case. It is seen from the decision of the Hon'ble High Court that once kraft paper has suffered duty no further duty can be charged after it is laminated by using bitumen. In the present appeal before us the Revenue has seek (sic.) to levy duty on single ply straw board and at the same time they have also collected duty on the multiple straw board manufactured from single ply straw board cleared by the assessee. In terms of the ratio of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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