Cce Lucknow vs M/S. Wimco Ltd

The Supreme Court upheld the CEGAT's decision that waste/scrap/parings of paper board generated during manufacturing do not constitute a new product for the purpose of excise duty under the Central Excise Act, 1944. The Court emphasized that 'manufacture' implies the emergence of a new substance with a distinct name, character, and use, which was not satisfied in this case. Consequently, the demand for duty amounting to Rs. 23,20,000 was deemed unsustainable, and the appeal was dismissed.