M/S. KORES INDIA LTD., CHENNAI versus COMMISSIONER OF CENTRAL EXCISE, CHENNAI

M/S. KORES INDIA LTD., CHENNAI versus COMMISSIONER OF CENTRAL EXCISE, CHENNAI

The process of cutting jumbo rolls of typewriter/telex ribbons into smaller, standardized lengths, winding/spooling them, and packaging results in a distinct, identifiable, and commercially marketable product different from the original inputs. Such processing amounts to 'manufacture' under the Central Excise and Salt Act, 1944, making the product liable to excise duty. Further, suppression of facts and intentional non-disclosure of manufacturing activity attracted the extended period of limitation under Rule 9(2) read with the proviso to Section 11A of the Act for demand of duty.

Parties
Appellant/assessee: MIS. KORES INDIA LTD., CHENNAI; Respondent/revenue: COMMISSIONER OF CENTRAL EXCISE, CHENNAI
Jurisdiction
India
Judgment Date
23 November 2004
Procedural Posture
Civil Appeal / Final Disposal by Supreme Court After Appeal From CEGAT Judgment
Outcome
Appeal dismissed (Civil Appeal No. 4322/1999); Connected appeals allowed
Legal Topics
Manufacture Under Excise Law, Extended Period of Limitation, Excise Duty Liability, Suppression of Facts
Central Excise Taxation Law Manufacture Under Excise Law Extended Period of Limitation Excise Duty Liability Suppression of Facts

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Parties

MIS. KORES INDIA LTD., CHENNAI

Appellant/assessee

COMMISSIONER OF CENTRAL EXCISE, CHENNAI

Respondent/revenue

Procedural Posture

Civil Appeal / Final Disposal by Supreme Court After Appeal From CEGAT Judgment

Legal Issues

  1. 1 Whether cutting and spooling of typewriter/telex ribbons from jumbo rolls amounts to 'manufacture' under the Central Excise and Salt Act, 1944
  2. 2 Whether the extended period of limitation for demand of duty is invokable due to suppression of facts

Ratio Decidendi

The process of cutting jumbo rolls of typewriter/telex ribbons into smaller, standardized lengths, winding/spooling them, and packaging results in a distinct, identifiable, and commercially marketable product different from the original inputs. Such processing amounts to 'manufacture' under the Central Excise and Salt Act, 1944, making the product liable to excise duty. Further, suppression of facts and intentional non-disclosure of manufacturing activity attracted the extended period of limitation under Rule 9(2) read with the proviso to Section 11A of the Act for demand of duty.

Court Disposition

Appeal dismissed (Civil Appeal No. 4322/1999); Connected appeals allowed

Orders

  • Order of the Collector as upheld by the Tribunal does not warrant interference.
  • Civil Appeal No. 4322/1999 dismissed; Appeals 2682-2690/2000 allowed; No order as to costs in the connected appeals.