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TMI Blog2000 (6) TMI 338X X X X Extracts X X X X X X X X Extracts X X X X ..... Penalty (ii) Shri Rakesh Gupta - Rs. 1,00,000 - Penalty 2. Shri V. Lakshmikumaran, learned Advocate, submitted that M/s. S.R. Tissues Pvt. Ltd. purchase duty paid jumbo rolls of tissues and after cutting and slitting and repacking them, they sell them as facial tissues, tissues roll form, tissues paper, table napkins, etc.; that the activity undertaken by them does not amount to manufacture as tissue papers remain tissue papers and no new product with a distinct name or character emerges as a result of the processess undertaken by them. He relied upon the decisions in the case of CCE v. Reelco Paper Products Private Ltd. - 1989 (40) E.L.T. 435, wherein it was held that mere slitting and rewinding of jumbo reels ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not make it ineligible for concessional rate of duty under SSI exemption notification. He relied upon the decision in the case of Chemguard Coatings Pvt. Ltd. v. CCE, Chennai - 2000 (116) E.L.T. 43 wherein it was held that mentioning name of foreign company, that is house mark, cannot be said as using brand name of another person. Finally, he submitted that the show cause notice was issued on 12-7-1999 for demanding duty for the period from 1-8-1997 to 14-10-1998 which is beyond the period of six months; that extended period of limitation is not invocable as the appellants entertained a bona fide belief that the process of slitting and cutting does not amount to manufacture in view of the decision of the Madras High Court in the case of Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ras). He also submitted that taking into consideration all these facts as well as market pattern of the products of both the companies and the fact that when the tempo was intercepted, it was carrying the products of both the companies, go to show the association of logo with M/s. S.R. Foils Ltd. The ld. SDR also contended that the process of slitting/cutting, and packing the tissue papers brings into existence a product with a distinct name, quality or use; that when a customer asks for tissues or napkins, the product as manufactured by the Appellants will be given and not the tissues paper in jumbo rolls. He also relied upon the decision in the case of Foils India Laminates Pvt. Ltd. v. CCE, Jaipur - 1999 (111) E.L.T. 728 (Tribunal) = 199 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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