S.V. Maruthi, Member (J)

1. The short point for consideration is whether the conversion by way of slitting and cutting of jumbo rolls of Video Magnetic Tapes into Pancakes amounts to manufacture as defined under Section 2(f) of the Central Excises Salt Act.

2. The appellants imported Video Magnetic jumbo rolls of about 10,000 ft. in length and 13 inch in width. These jumbo rolls are subjected to the process of slitting for making smaller rolls known as 'Pancakes' having approximately 12.65 mm width and 10,000 ft. in length. The process of slitting according to the appellants, is by machine known as slitting machine. After slitting the product, it is known as 'Pancake'. An application was made to the Assistant Collector for issue of a certificate certifying that the process of slitting of Video Magnetic Tapes into Pancakes from jumbo rolls is exempted from the central excise control. Therefore, no licence is required. The Assistant Collector rejected their request on the ground that the process of slitting of jumbo rolls into pancakes amounts to manufacture and therefore, no certificate as prayed for can be issued. On appeal, the Collector confirmed the order of the Assistant C