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TMI Blog2000 (2) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... glass fritz of various colours as per the designs on the surface of the glazed tiles which on being fired would melt and blend with the surface of the tiles thereby turning the glazed tiles into decorative tiles. The machinery for this activity was imported and cleared under the Project Import Regulation Scheme under the concessional rate of duty. The imports were made sometime in 1996 and the production commenced in April 1997. In Feb. 1998, the premises were searched by the jurisdictional officers in the belief that the appellants were manufacturing dutiable excisable products and clearing them without payment of duty. The officers seized the fully finished tiles on 7-2-1998 under a panchanama. The appellants then moved the Jurisdictional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the duty paid tiles procured by them, citation was also made on the fact that they were separately paying sales tax on the tiles produced by them. The show cause notice took cognisance of the letter, dated 29-1-1997 under which the present appellant had declared their intention to process the tiles in the aforesaid manner. The allegation made was that the declaration of intention was not material for determining the separate dutiability of tiles. It was also mentioned that the letter was cryptic and did not give exclusive details of the actual process undertaken. It was also mentioned that the letter was in contravention of the various declaration made to the various agencies. On these grounds, the show cause notice alleged misdeclaration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d them to pre-deposit a sum of Rs. 15 lakhs within a specific period. The assessee then moved the High Court once again. The High Court directed that the appeal be heard without insisting on the deposit of the specific amount. Directions were made for disposal of the appeal itself within a specific time. The time limit could not be adhered to due to difficulties on both the sides. The matter was finally heard today. 3.We have heard Shri R.C. Saxena, ld. advocate for the appellants and Shri Deepak Kumar, ld. DR for the department. 4.The basic question for decision is whether the activities elaborated earlier amounted to manufacture of new and distinct commercially known product coming into existence. Shri Saxena relied very strongly on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t had taken cognizance of the arguments made by the Revenue that such printing resulted in a situation where the glass bottles ceased to be any use except for being used exclusively by the persons whose logo was printed thereupon. In that way it was claimed that it was a distinct commodity. The Supreme Court did not accept this contention. 6.To our mind, the ratio of this judgment squarely applies to the issue before us. In fact, in paragraph 18 of the same judgment a Trade Notice of the department was referred. It stated that the glassware decorated in a different factory after the receipt of duty paid plain glassware would not be again dutiable. It is correct that the said Trade Notice pertains to the specific items as it stood in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irely different commodity from the recorded cassette. The glass bottles, however, continue to remain as glass bottles before as well as after being printed. The tiles also continue to have the same purposes. In our mind, the ratio of the Gramophone Co. of India Ltd. judgment is not relevant in this case. 8. The specific use to which these two products are being put together has also been considered by the Tribunal in the post J.G. Glass Industries Ltd. judgment. It is in their judgment in the case of Tex Print Textiles (P) Ltd. [1999 (83) ECR 623 (Tri)], that the Tribunal observed that the cotton-flocked fabrics had the same use whether they were printed or not printed. 9.Since we are allowing the appeal on merits, we do not feel it n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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