MODERN INDUSTRIAL CORPORATION vs COLLECTOR OF CENTRAL EXCISE & ORS.

The Supreme Court held that the process of manufacturing flock paper by the appellant, which involved printing on one side of the paper, qualifies for exemption under Notification No. 68/76 dated March 16, 1976, as long as the appropriate excise duty has been paid on the paper used. The Court clarified that the notification's language indicates that subsequent processes like varnishing or glazing do not affect eligibility for exemption. The Tribunal's finding that there was no color printing was overturned, affirming the Appellate Collector's decision that the appellant's process constituted color printing and thus entitled to duty exemption under Section 35-L of the Central Excise and Salt Act, 1944.