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TMI Blog2011 (4) TMI 800X X X X Extracts X X X X X X X X Extracts X X X X ..... ariff. They clear cut paper sheets as well as paper in reels. They have sales of cut papers as well as paper reels at the factory gate as well as through depots. Besides this, some quantity of paper reels are cleared on payment of duty to cutting centres for cutting on job work basis and from there, the cut paper sheets are transferred to depot from where the same are sold. The dispute in this case is about the value of the paper reels cleared to cutting centres, which after cutting into sheets were sold from depot. The period of dispute in these appeals is from 1/7/98 to 31/3/03. The Department s contention is that in respect of the reels cleared to cutting centres for conversation into sheets and which were subsequently sold from the depo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Central Excise Act, 1944 and not the condition in which the goods are finally sold to the customers from the job worker cutters/depots after carrying out the further operations. The Commissioner (Appeals), therefore, held that the handling charges incurred at the cutting centres are not to be included in the assessable value. It is against these orders of the Commissioner (Appeals) that these three appeals have been filed by the Revenue. 2. Heard both the sides. 2.1 Shri Sunil Kumar, the learned Departmental Representative, assailed the impugned order reiterating the grounds of appeal in the Revenue s appeal and pleaded that in this case the paper in reels had been cleared to cutting centres for conversation into sheet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paper reels at the price of paper reels prevailing at the depot at the time of removal, there is no question of addition of the expenses of freight, insurance and handling incurred in sending the cut paper from the cutting centres to depot and that in view of this, there is no infirmity in the impugned order. 3. We have carefully considered the submissions from both the sides and perused the records. 4. The point of dispute, as succinctly mentioned by the Additional Commissioner in para 15 and 16 of the order-in-original dated 3/6/04, is as under :- 15. The party is clearing paper reels and cut paper through various routes. These goods are broadly cleared in the following manner :- Reels are, - A. So ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from factory to the cutting centre and cutting centre to depot. 6. In the case of Union of India vs. J.G. Glass Industries Ltd. reported in 1998 (97) E.L.T. 5 (S.C.) the point of dispute was as to whether printing/decoration of Glass bottles amounts to manufacture and also whether the printing/decoration charges would be includible in the assessable value of the glass bottles, if the printing and decoration is done in the same factory in which the glass bottles are manufactured. Hon ble Supreme Court in this case while holding that printing or decoration on plain glass bottles would not amount to manufacture, in para 23 of the judgment, the Hon ble Court held that when the printing/decoration is done in the same factory in which the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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