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TMI Blog1991 (3) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... lants demanding a duty of Rs. 7733.32 under Rule 9(2) on the ground that they had exceeded the limit of Rs. 6 lakhs in November, 1983 and of Rs. 7.5 lakhs in March, 1984 and had not complied with the Central Excise formalities under Rules 173B, and 173C and had not paid duty after crossing the exemption limit of clearance at Rs. 7.5 lakhs. The appellants took the plea that in respect of cartons belonging to M/s. Sea Pearl Industries, Chandiroor they had only undertaken job work of printing and punching and this did not amount to manufacture . Such goods could not form part of the goods of their unit for arriving at the value of the clearance and if the value of these goods is excluded, the appellants continue to remain in the exempted sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ujarat Industries - 1977 (1) E.L.T. J 67 (Guj.) (b) Vikrant Packers (Pvt.) Ltd., - 1987 (31) E.L.T. 515 (Trib.) 3. It was held by the Gujarat High Court in the first case that mere printing of design and monograms and other description of goods regarding the quantity or the name of manufacturers does not convert packing or wrapping into any other kind of paper. The ratio of the second decision was that printing blank paper with design and reading matter will not bring into existence a new product. 4. Refuting the arguments of Dr. Narayanan, the learned Jr. D.R., Shri Murthy stated that it is only after punching that the process of manufacture becomes complete and since manufacture takes place in the appellant s factory, it is here tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so that they can be folded to get the required shape of cartons. The learned Jr. D.R. has stated that the process of manufacture becomes complete after the punching takes place in the appellants factory. This argument has not been rebutted by the learned counsel for the appellants by producing any material before us. In the circumstances, it is evident that the process undertaken by the appellants amounted to manufacture within the meaning of Section 2(f) of the Central Excises and Salt Act. Consequently, Central Excise duty was payable by the appellants on the cartons manufactured in their factory. The value of clearances of these goods had to be taken into account for the purpose of Exemption Notification No. 83/83-C.E., dated 1-3-1983. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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