LAMINATED PACKINGS (P) LTD. vs COLLECTOR OF CENTRAL EXCISE, GUNTUR

The Supreme Court held that the lamination of duty paid kraft paper with polyethylene constitutes 'manufacture' under Section 2(f) of the Central Excise Act, 1944, making it excisable. The Court clarified that the transformation results in a distinct product known in the market as polyethylene laminated kraft paper, which is different from the original kraft paper. Consequently, the appeal against the CEGAT's order was dismissed, affirming the duty liability on the appellant.