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TMI Blog2010 (2) TMI 957X X X X Extracts X X X X X X X X Extracts X X X X ..... I. 2. Brief facts of the cases are that the applicants have applied for Central Excise registration on 2-8-2005 and obtained the said registration on 19-8-2005 for manufacture of Tissue Paper and Printing Papers cut into sizes, falling under Chapter 48 of the Schedule to the Central Excise Tariff Act, 1985. The applicants availed cenvat facility for the raw material procured on payment of Central Excise duty and also procured duty free materials under Notification 43/2001-C.E., dated 26-6-2001 for use in the manufacture of export products. 2.2 The applicants procured duty paid raw materials, viz. tissue paper in the form of jumbo rolls and sheets at their factory premises and availed Cenvat credit of the duty paid on such inputs. The said jumbo rolls were cut and slit into smaller sheets of the required sizes as per their export orders, bundles prepared of such smaller sheets, folded and packed in BOPP bags, labeled and exported on payment of appropriate duty of excise by debit from the cenvat account. The exports were effected under six different ARE-1. Consequent upon the exports, the applicants filed six rebate claims before the Jurisdictional Dy. Commissioner of Central Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing grounds : 4.1 That the applicant procured duty paid tissue papers in jumbo rolls and sheets and availed the Cenvat credit of such so paid. The said jumbo rolls/sheets were cut/slit into smaller sizes and after packing and labeling the same, were exported on duty payment , under claim of rebate for such duty paid on finished goods. Such exports took place during the period September, 05 to October, 05. 4.2 That the issue whether cutting of tissue papers in jumbo rolls and sheets into smaller sizes amounted to manufacture within the meaning of Section 2(f) of the Central Excise Act, 1944 was contested issue during the material period. The department was of the view that such activity amounts to manufacture and accordingly, the applicant was granted Central Excise registration for this purpose and the duty paid thereon was also collected and retained from them, by the department. 4.3 In any case, the applicant was of the view that inasmuch as the finished goods (cut tissue papers) were to be eventually exported and the duty paid thereon was available to the applicant as rebate, applicable Central Excise duty was paid on the same, which in the department s view was levi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee was not required to pay the duty still if he has paid the duty which has been received by the petitioners they cannot retain the same on any ground and must refund the amount received from the assessee as on their own showing. It has not received the amount by way of duty which could be appropriated by them nor to which Section 11B applies. If on the other hand the assessee is held entitled to remove the goods on payment of duty in ordinary course and then he is entitled to claim rebate thereon because the goods were exported out of country as payment of excise duty thereon. In either case the result is same. Re : in the case of CCE v. Simplex Pharma Pvt. Ltd., 2008 (229) E.L.T. 504 (P H) 4.7 That as already mentioned supra, meaning of manufacture is much wider when it comes to the issue of rebate on export goods and the same conventional meaning given in Section 2(f) to any activity is no longer relevant. The very issue of whether cutting of jumbo rolls of papers will amount to manufacture or not is answered differently by various courts, including the Hon ble Apex Court, as can be seen from the below : (a) Kores India Ltd. v. UOI, 2004 (174) E.L.T. 7 (S.C.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Shri S.R. Dixit, Advocate and Sh. Shobhit Singh appeared on behalf of the applicant and reiterated the grounds of revision applications. 6. Govt. has considered the relevant case records, both oral and written submissions of the applicant and also perused the orders passed by the lower authorities. 7. From the perusal of records, Govt. observes that the applicant obtained the Central Excise registration on 19-8-2005 for manufacture of tissue paper and printing papers cut into sizes. The applicant availed cenvat facility for the raw material procured on payment of Central Excise Duty and also procured duty free raw materials under Notification No. 43/2001-C.E. (N.T.), dated 26-5-2001 for use in the manufacture of the exported goods. In view of the judgment of Hon ble Supreme Court dated 5-8-2005 in the case of CCE, Delhi v. SR Tissues Ltd. - 2005 (186) E.L.T. 385 (S.C.) that the activity of cutting and slitting of jumbo rolls of tissue paper into smaller sheets and their packing etc. did not amount to manufacture, hence the process undertaken by the applicant did not amount to the manufacture and the finished goods could not be considered as excisable goods liable to excise du ..... X X X X Extracts X X X X X X X X Extracts X X X X
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