AIR 1989 SUPREME COURT 2066 ::1990 SCC(Tax) 138 ::(1989) 43 ELT 178 ::1989 (4) SCC 724 ::(1990) 185 ITR 575 ::(1989) 3 JT 460 (SC)

Supreme Court Of India

(From : Appellate Tribunal, New Delhi)*

Hon'ble Judge(s): S. Ranganathan, N. D. Ojha, J. S. Verma , JJJ

Central Excise and Salt Act (1 of 1944) , S.2(f), Sch.I Item.68— Notification No. 201 / 79 dt. 4-6-79 as amended by Notification No. 105 / 82 dt. 28-2-1982 - Manufacture of paper - Paper core would be constituent part of paper - It falls within term "Component parts" used in Notification in so far as manufacture of paper in rolls is concerned. In the manufacture of paper rolls delivered to the customers for use as roll paper, paper core is used as component part within the meaning of Notification. The use of paper core is necessary for rewinding of paper if it is delivered to the customer in rolls and would come within the purview of the expression "any process incidental or ancillary to the completion of a manufactured product" used in the definition of the term "manufacture" in S.2(f) of the Act and for the same reason paper core would also be constituent part of paper and would thus fall within the term "component parts" used in the Notification in so far as manufacture of paper in rolls is concerned. Paper core, however, cannot be said to be used in the manufacture of paper in sheets as component part, the relevant tariff item uses the word "paper" but since paper in rolls and paper in sheets are nothing but different forms of paper, both of them would be excisable goods as paper under the relevant tariff item.(Para 15) @pa....