COLLECTOR OF CENTRAL EXCISE,MEERUT vs M/S.KAPRI INT. (P) LTD.

The Supreme Court held that the manufacture of bed-sheets and similar products from cotton fabrics constitutes a new commodity with a distinct market identity, thus making it exigible to duty under Tariff Item 19(I). The Court found the tribunal's conclusion that such products are not subject to fresh duty erroneous, reaffirming the principle established in Laminated Packings (P) Ltd. v. Collector of C. Ex. that goods with distinct identities are dutiable regardless of prior duty on raw materials. The appeal by the Revenue was allowed, overturning the tribunal's decision.