9911796707
TMI Blog1998 (1) TMI 182X X X X Extracts X X X X X X X X Extracts X X X X ..... es in loose and flattened condition. In their factory, they folded and stapled the same so that the footwear could be placed inside the boxes so made. Controversy before us is whether the cartons/containers/boxes so made by them as aforesaid having been ultimately used for taking manufactured product namely, Footwear, can be termed as a manufacture of printed cartons by them, so as to classify the same under Tariff Headings : 4818.13 (upto March, 1988) and thereafter, 4819.12 (from April, 1988 to the end of the period involved). 1.2 A show cause notice was issued alleging that the appellants had suppressed the fact of manufacture of printed cartons by them in their Classification List which simply described the goods manufactured by them ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent heading and therefore, it is an activity liable to duty. Hence the demand of duty is sustainable. 2.2 As regards the limitation, he submits that they did not mention any such thing, in their Classification List upto June, 1988; they only mentioned Plain Cartons (not printed) , thereby suppressing materially their activity of folding, stapling and pasting of printed labels. He, therefore, prays for setting aside the impugned Order and confirming the demand of duty. 3. Opposing the contentions, learned Advocate, Shri S.K. Bagaria for the respondent firm, submits that plain flattened carton remains a carton even after folding and therefore, it cannot be said that any new commodity has been brought into existence by them. He further su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hon ble Supreme Court was considering the issue as to whether printing of glass bottles amounts to manufacture within the meaning of Section 2(f). The Hon ble Supreme Court was pleased to hold that for deciding as to whether any manufacture has taken place, two tests have to be satisfied. First, whether by the said process a different commercial commodity comes into existence or whether the identity of the original commodity ceases to exist; secondly, whether the commodity which was already in existence will serve no purpose but for the said process. By applying the said tests, the Hon ble Supreme Court was pleased to hold that by the process of printing, names or logos on the bottles, the basic character of bottles did not change and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacture because the commodity remains the same. It was a container before, and after the activity, also remains the container. This is particularly so, in view of the definition of cartons/boxes/containers/cases given in Tariff Headings : 48.18 and 48.19 (with effect from 1-4-1988), wherein it has been stated as cartons/boxes/containers/cases (including flattened or folded boxes and flattened or folded cartons) . It is, therefore, apparent that flattened or folded boxes and flattened or folded cartons mean the same thing as cartons, boxes or containers, so far as the Central Excise Tariff is concerned. We therefore, hold that the respondents herein have not brought into existence any new commodity for the activities undertaken by them as ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
