The Collector Of Central Excise, Meerut vs M/S. Kapri International (P) Ltd

The Supreme Court held that the manufacture of bed-sheets and similar products from cotton fabrics constitutes a new commodity with distinct market identity, thus making it exigible to excise duty under Tariff Item 19(I). The Court found the tribunal's conclusion that previously taxed raw materials exempted the new products from duty to be erroneous, reaffirming the principle established in Laminated Packings (P) Ltd. v. Collector of C. Ex. that manufacture results in dutiable goods. The appeal by the Revenue was allowed, overturning the tribunal's decision.