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TMI Blog2013 (12) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... ct is exigible to excise duty. The order of reference discerned a conflict in decisions of this Tribunal in Trans Asia Carpets Ltd. Vs Commissioner of Central Excise, Meerut [ 2006 (116) E.L.T.135 (Tribunal)] and the subsequent decision in Jyothi Carpet Industries Vs Commissioner of Central Excise, Jaipur [ 2001 (132) E.L.T. 458 (Tri.-Del.)]. Hence the referral for resolution of this apparent conflict. 2. The assessee is a manufacturer of 'floor mats' and 'car mats' classifiable under Chapter Heading 5702.19 of the Central Excise Tariff Act, 1985. The assessee purchased imported tufted carpet rolls scrap; cut them into shapes and sizes - stitched edges to the cut material by employing machines for the same and then sold the same either as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olved in the transaction under scrutiny. Suffice it to notice that the Tribunal concluded that conversion of carpets rolls into smaller size carpets and stitching the edges not amount to manufacture. Jyothi Carpet Industries (supra) distinguished the earlier judgment in Trans Asia Carpets Ltd. (supra) on the ground that observations in the earlier decision were obiter, since valuation was the substantive issue in the earlier case and observations on the manufacture aspect did not thus constitute the decision ratio decidendi. 6. The essential principle that manufacture results when pursuant to a process, a distinct, independent and marketable commodity emerges, is not a problematic, for identification of the exigibility to excise duty. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... put to the process of cutting /slitting and packing. On factual analysis, it was observed that the characteristics of the tissue paper, whether in the Jumbo-rolls format or as table napkins, facial tissues etc. remained the same and that in Jumbo-roll form the product cannot conveniently be used for the end purposes. They are cut into various shapes and sizes for convenient end use. After referring to several decisions including the earlier decision in Brakes India Ltd. (supra), the court concluded that the process of slitting/cutting of jumbo rolls to plain tissue paper/aluminium paper into smaller sizes would not amount to manufacture on first principles or under Section 2(f) of the Central Excise Act, 1944. 9. The Larger Bench of the T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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