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TMI Blog2003 (3) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... is; that the CTP in jumbo rolls of width of 470 mm to 520 mm and length 12,100 meters (approximately) is received by them various cigarette manufacturers; that after printing, the CTP is slit (cut) into strips of various sizes, namely, width of 35 mm to 48 mm and length ranging from 2000 to 3000 metres and the same is returned to the cigarette manufacturers; that the issue of excisability of printed cork tipping paper has been set on rest by the Tribunal in the case of Lakshmi Packaging (P) Ltd. v. CCE, Trichy, 2000 (117) E.L.T. 333 (T) wherein it has been held that "the printing of such pictorial representations on duty paid paper would not amount to manufacture"; that the appeal filed by the Revenue against the said decision has been dism ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tationery material etc.; that, therefore the finding of the Commissioner that they had used Alcohol Gravure Cork Tip Buff Ink is formulated on alcohol solvent system with ingredients to meet cigarette packaging requirement is totally incorrect and goes contrary to the evidence; that they had produced the certificate in this regard from M/s. Coats of India Ltd., M/s. Hindustan Inks and Resins Ltd. and by Shri Vijender Sharma, Ink Technologist Member, Printing Inks Sectional Committee CHD 14 of Bureau of Indian Standards. 3. Countering the arguments, Shri Jagdish Singh, learned DR, reiterated the findings as contained in the impugned Order passed by the Commissioner. He relied upon the decision in the case of CCE, Surat v. Akruti Video Cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er with polyethylene which result into polyethylene laminated kraft paper amounts to manufacture". Finally, learned DR mentioned that the facts and circumstances in the case of Lakshmi Packaging (P) Limited are different from the facts of the present matter inasmuch as the said decision does not relate to the printing of cork tipping paper and there was no substantial increase in the value of the product after printing while in the present matter there is a considerable value addition up to 30% in the price of the product after printing and slitting. In reply, the learned Senior Advocate submitted that the cork tipping paper is light weight tissue paper which is used in the manufacture of filter tipped cigarettes; that CTP is used to wrap t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... em and after these processes, the paper is known as printed cork tipping paper. The Central Excise duty is levied and collected on the goods manufactured in India. It has been held by the Supreme Court in the case of Union of India v. Delhi Cloth and General Mills, 1977 (1) E.L.T. (J199) (S.C.) that 'manufacture' implies a change, but every change is not manufacture and yet every change of an article is the result of treatment, labour and manipulation. But something more is necessary and there must be transformation; a new and different article must emerge having a distinctive name, character or use." The Supreme Court after referring to the various decisions on the aspect of manufacture has laid down a two-fold test for deciding whether th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e changes said to have been made in some characteristics of the paper have made it useful for being used for tipping filter of the cigarettes. We, further, find that the issue involved stands decided by the Tribunal in the case of Lakshmi Packaging (P) Limited v. CCE, Trichy, 2000 (117) E.L.T. 333 (T) wherein the Tribunal has clearly held that "Printing of data on duty paid base paper does not amount to manufacture". The Tribunal has followed its earlier decision in the case of Lakshmi Packaging (P) Limited only (Final Order No. 1689/97, dated 8-7-97). The Supreme Court has dismissed Civil Appeal filed by the CCE, Trichy [2000 (120) E.L.T. A191 (S.C.)] observing that "In view of the fact that no appeal was carried by the Excise Authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X
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