COLLECTOR OF CENTRAL EXISE, CULCUTTA-II vs EASTEND PAPER INDUSTRIES LTD. & ANR.

The Supreme Court held that under Section 2(f) of the Central Excises and Salt Act, 1944, wrapping paper used in the manufacture of other varieties of paper is deemed a component part of the end product, thus exempting it from excise duty. The Court clarified that 'manufacture' is not complete until wrapping is done, as it is integral to the finished product. The appeals by the Revenue were dismissed, affirming the Tribunal's decision that wrapping paper is essential in the manufacturing process and should not attract excise duty.