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TMI Blog2016 (3) TMI 263X X X X Extracts X X X X X X X X Extracts X X X X ..... cms., packs them accordingly and clears the same. The Department has not brought forward any evidence to the effect that even after expansion the appellant/assessee is clearing only Carbon Papers of width exceeding 36 cms. The learned Commissioner (Appeals) in his impugned order dated 26/12/2006 recorded that at first Carbon Paper with normal width exceeding 36 cms. is manufactured by the unit and subsequently after printing and coating the same can be converted/sized to Carbon Paper of less width and length by dividing and cutting machine as per the requirement of the market. Having recorded so, the learned Commissioner (Appeals) proceed to conclude that cutting Carbon Paper of broader width to smaller size will amount to manufacture and h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Final Order No. 50135-50142/2016 - Dated:- 1-2-2016 - SHRI S.K. MOHANTY, MEMBER (JUDICIAL) AND SHRI B. RAVICHANDRAN, MEMBER (TECHNICAL) For the Petitioner : Ms. Surabhi Sinha, Advocate For the Respondent : Shri R.K. Mishra, Authorized Representative (DR) ORDER PER. B. RAVICHANDRAN :- These 8 appeals are dealing with the same issue, made up of two sets of 4 appeals each, against Commissioner (Appeals) orders dated 26/12/2006 and 14/06/2007. All these appeals are taken up together for disposal. The main appellant M/s Whale Stationery Products Ltd. are engaged in the manufacture of Stencil Paper and Carbon Paper falling under Tariff Heading 4816 and 4809 liable to Central Excise duty. The main appellant is located i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als. 3. The learned Counsel for the appellants submitted that in the impugned orders the exemption to the appellant/assessee was denied on the ground that the product they made in their unit is falling under Tariff Heading 4809.10 Carbon Paper of width exceeding 36 cms. This product, being a finished and marketable product, is not entitled for exemption under Notification No. 50/2003-CE in view of Sl. No. 19 of Annexure I of the said Notification. The learned Counsel further submitted that said Carbon Paper is further cut and slit to make Carbon Paper of less than 36 cms. width. The finding of the lower Authority is that since such cutting process will amount to manufacture the appellant/assessee is liable to Central Excise duty. The Car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted availing the exemption under the above said notification. The learned Counsel submitted that the appellant/assessee had increased their production capacity as per the requirement in the notification and they have been clearing products under Heading 4816 after cutting and slitting the larger carbon papers made by them in their unit. 4. The learned AR reiterated the findings of the lower Authority. He submitted that though the learned Commissioner (Appeals) found that the appellant/assessee undertaken substantial expansion, the benefit of notification was not extended on the ground that the appellant/assessee are engaged in the manufacture of carbon paper of width exceeding 36 cms. falling under Tariff Heading 4809.10. The said produc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner (Appeals) held that what is happening subsequently is of no relevance. We find such conclusion is devoid of merit. It is the appellant s plea that they have added cutting machine during the course of expansion. This was admitted in the impugned order. The appellant/assessee cuts the Carbon Paper having width of 69 cms. to make Carbon Paper of less than 36 cms., packs them accordingly and clears the same. The Department has not brought forward any evidence to the effect that even after expansion the appellant/assessee is clearing only Carbon Papers of width exceeding 36 cms. The learned Commissioner (Appeals) in his impugned order dated 26/12/2006 recorded that at first Carbon Paper with normal width exceeding 36 cms. is manufactured by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the jumbo roll are not different from the characteristics of the tissue paper, after slitting and cutting, in the table napkins, in the toilet rolls and in the facial tissues . 6. The learned Commissioner (Appeals) distinguished the said decision of the Hon ble Supreme Court stating that slitting and cutting other process like coating, chilling, tinting printing, punching, sizing etc. are also carried out resulting in Carbon Paper for various applications. We find that such assertion has not been categorically supported with any evidence. Further, as observed above, the impugned order itself mentions that after printing and coating the Carbon Paper of larger size is converted or sized into Carbon Paper of smaller size. There is no a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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