New Delhi, Feb 10 (KNN) The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that mere cutting and slitting of paper cannot be construed as manufacturing for the purpose of Excise and Customs.
 
The Bench has observed that "mere cutting and slitting of paper roll and conversion into sheets does not change the identity of the paper. Therefore, this activity does not fall under the purview of manufacture as defined under section 2(f) of the Central Excise Act, 1944”.
 
In the present case, the respondent was engaged in cutting and slitting of paper from large paper rolls purchased from paper manufacturers. The Excise department demanded excise tax terming the activity as manufacturing.
 
The Bench further observed that “much water has flown and by the judgments relied upon by the learned Commissioner (Appeals), the issue has been settled and the Hon'ble Supreme Court and the Tribunal in those judgments have consistently held that cutting and slitting of paper roll into sheets of various sizes does not amount to manufacture."
 
The bench dismissed the Revenue appeals.(KNN/AB)