CCE LUCKNOW vs M/S WIMCO LTD.

The Supreme Court upheld the decision of the Customs Excise and Gold (Control) Appellate Tribunal (CEGAT) which ruled that waste/scrap/parings generated during the manufacture of paper and paper board do not constitute a new product for the purpose of excise duty under the Central Excise Act, 1944. The Court emphasized that the term '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 allowed in favor of the respondent.