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TMI Blog1991 (2) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... r disclosed that the tin sheets used in the containers were got printed from M/s. Gujarat Metal Box, Ahmedabad with the aid of power operated machines. 3. On the basis of the material collected, a show cause notice dated February 14, 1977 was issued to the petitioner alleging that the petitioner had contravened the provisions of Rule 53 read with Rule 173G(4) of the Central Excise Rules, 1944. It was also alleged that the petitioner had failed to account for 49,885 metal containers and that these goods were removed without filing classifications, price lists and without issuing Central Excise gate passes in form GP-I and without determining and paying the Central Excise duty leviable thereon at the appropriate rates. The petitioner submitted reply and resisted the show cause notice on facts as well as on law points. It was mainly contended that the petitioner was entitled to exemption under Notification No. 94/70 dated May 1, 1970 which provided for exemption in case the containers were manufactured without the aid of power. After hearing the petitioner, the Collector of Customs and Central Excise, Ahmedabad passed order dated December 20, 1978. By this order it is held that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e physical dimension and also the gold lacquering in accordance with certain quality and the printing was required to be done as per the sample. Specification given in the order read as follows :- "printed tins for calphos fabricated from 30 gauge electrolytic tin plates golden lacquered body." In view of this position, the tin containers as per the specification of M/s. Excel Industries, Bhavnagar were required to be manufactured by the petitioner and were required to be supplied to the buyer M/s. Excel Industries, Bhavnagar. 7. On facts it is found that the petitioner got the tin sheets printed from M/s. Gujarat Metal Box, Ahmedabad. It was to the knowledge of the petitioner that such printing was done by M/s. Gujarat Metal Box with the aid of power operated machines. The Collector found that the printing had specific relation to the order placed by the manufacturer of metal containers. The printing of the sheets was the first stage of the manufacture of the containers for a particular buyer i.e. M/s. Excel Industries Pvt. Ltd. The printing of the sheets was for the specific purpose of packing the product i.e. calphos tablets. The Collector held that the fact that printing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, the Court considered the decision of the Supreme Court in the case of Chowgule Co. Pvt. Ltd. v. Union of India reported in AIR 1981 Supreme Court page 1014. In the context of the provisions of the Central Sales Tax Act, the Supreme Court held that the operation of blending of ore would amount to 'processing' of ore within the meaning of Section 8(3)(b) of Central Sales Tax Act and Rule 13 of Central Sales Tax Rules, 1957. In the course of the judgment the Supreme Court inter alia observed that whenever a commodity undergoes a change as a result of some operation performed on it or in regard to it, such operation would amount to processing of the commodity. The Supreme Court further observed that what is necessary in order to characterise an operation as 'processing' is that the commodity must as a result of the operation experience some change. 11. Following this decision of the Supreme Court, this court in the case of S.K. Patel (supra) observed as follows :- ".......it is clear that before any activity can amount to processing, it must be found that the commodity has, as a result of the operation, experienced some change. If there is no change there cannot be said to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration before the Supreme Court in the case of Empire Industries Ltd. v. Union of India reported in AIR 1986 Supreme Court page 662 = 1985 (20) E.L.T. 17-9 (S.C.). Explaining the decision, the Supreme Court inter alia observed that printing and lacquering were not even remotely connected with the manufacture of aluminium tubes. It was a process independent of the manufacture of aluminium tubes. Thereafter the Supreme Court observed to the effect that the question whether a particular process is a process of manufacture or not has to be determined naturally having regard to the facts and circumstances of each case and having regard to the well-known tests laid down by the Supreme Court. 14. In the instant case, the change in the raw material is brought about before the commodity (i.e. tin container) is manufactured and much prior to the stage at which the ultimate product comes into existence. Printing and lacquering on the sheets is one of the stages aimed at the ultimate manufacture of the product i.e. tin container. It is a step or intermediate process which does bring about a change in the raw materials i.e. sheets. This being the distinction, the decision of this High ..... X X X X Extracts X X X X X X X X Extracts X X X X
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