9911796707
TMI Blog1994 (1) TMI 300X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacture of Wadding, Bandages and Gauze. The Assistant Collector classified these goods under Heading 30.04 and confirmed the demand raised in the Show Cause Notice dated 28-8-1986 rejecting the claim of the appellants for the classification of the subject goods under Heading 30.03. Against that Order of the Assistant Collector the appellants filed the appeal before the Collector (Appeals), but without success. Hence the present appeal. 3. During the pendency of the appeal, the appellants moved the captioned Misc. Application for raising an additional ground to the effect that the activity undertaken by the appellants with respect to the subject goods cannot amount to manufacture within the meaning of Section 2(f) of the Central Exci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this activity does not amount to manufacture. (ii) Cotton Absorbent Wool The appellants buy raw cotton and waste cotton and bleach them and thereafter card them which is specifically classified under Chapter 52, Heading 5202.00 as "cotton carded or combed - nil rate". 6. To support his said contention, he cited the following cases - (i) Collector of Central Excise v. Lakaki Works (P) Ltd., 1988 (37) E.L.T. 392, wherein it was held that branding, repacking and relabelling does not amount to manufacture. (ii) Deputy Commissioner, Sales Tax (Law), Board of Revenue (Taxes) v. Pio Food Packers, 1980 (6) E.L.T. 343, wherein it was held by the Apex Court that conversion into pineapple slices for sale in sealed cans d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dditional ground, as prayed for. On merits, he submitted that the process of manufacture, as submitted by the appellants, itself goes to show that the activity undertaken by the appellants amounts to manufacture. As regards the contention of the learned counsel for the appellants that the authorities below should have allowed the permissible deductions while computing the duty payable, he contended that both the authorities below after considering the plea of the appellants have allowed the deductions which were permissible under the law. 9. We have considered the submissions and the case law cited at the Bar. 10. As regards the prayer for raising the additional ground, we find that this is not altogether a new ground. In paragr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a different commodity or article from one used as a base material, has a distinct name, character and use as such meaning given to article or product in a fiscal statute as people in trade conversant with sufficient knowledge and understand them in usual course. These satisfy the tests laid down by the Hon'ble Supreme Court in various judgments. 12. As regards Wadding that is to say absorbent cotton wool the Assistant Collector has observed that the process of manufacture as absorbent cotton wool is different from the carded or combed cotton; that raw cotton is boiled and bleached and absorbency indicated. In the process, cotton loses its spinnability, as a result the product is not simple cotton but something else, as far as its util ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion in appeal, the Collector (Appeals) also observed as follows : "Section 4(4)(d)(ii) reads as follows : Value in relation to any excisable goods does not include the amount of the duty of excise, sales tax and other taxes, if any, payable on such goods. By explanation it is stated that the amount of the duty of excise payable on any excisable goods shall be the sum total of the effective duty of excise payable on such goods under this Act. Therefore, if in the price, duty is included then, for determining the assessable value as per the authority of this sub-section the amount of duty of excise has to be deducted. In the present case, the appellants quoted the price not inclusive of duty but without any excise duty, because they were un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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