CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL ALLAHABAD REGIONAL BENCH - COURT NO.I (Arising out of Order-In-Original No.38-2017-CE, dated 15.09.2017 passed by Commissioner, Additional Director General (Adjudication), GST Intelligence, New Delhi)

M/s Calcutta Security Printers Ltd. …..Appellant (12/478-A, Mcrobert Ganj, Kanpur)

VERSUS Additional Director General (Adjudication), New Delhi ….Respondent (West Block No.VIII, Wing No.6, Sector-I, R. K. Puram, New Delhi-110066)

AND Excise Appeal No.70002 of 2018 (Arising out of Order-In-Original No.38-2017-CE, dated 15.09.2017 passed by Commissioner, Additional Director General (Adjudication), GST Intelligence, New Delhi)

M/s Vaibhav Bhargava, Director …..Appellant (Director M/s Calcutta Security Printers Ltd.

12/478-A, Mcrobert Ganj, Kanpur)

VERSUS Additional Director General (Adjudication), New Delhi ….Respondent (West Block No.VIII, Wing No.6, Sector-I, R. K. Puram, New Delhi-110066)

APPEARANCE Shri B. L. Narasimhan, Advocate for the Appellant Shri Santosh Kumar, Authorized Representative for the Respondent CORAM: HON’BLE MR. P. K. CHOUDHARY, MEMBER (JUDICIAL)

HON’BLE MR. P. ANJANI KUMAR, MEMBER (TECHNICAL)

FINAL ORDER NO.-70073-70074/2026 DATE OF HEARING : 10.03.2026 DATE OF DECISION : 13.03.2026 P. ANJANI KUMAR:

The Appellant is Calcutta Security Printers Ltd and is engaged in the printing of cheque books, cartons/boxes/cases, calendars, sheets, match tickets, letterhead pads, Adhiwakta welfare stamps and other products; the Appellants undertook printing on behalf of others also on job works basis; The Appellants were of the opinion that the activity undertaken by them does not amount, to manufacture and thus no Central Excise duty is payable by them. The Officers of DGCA or DGGSTI visited the factory premises of the Appellant on 16.07.2015 and on conduct of search and investigation, a Show Cause Notice dated 02.06.2016 was issued; the officers entertained an opinion that the activity undertaken by the Appellants amounts to manufacture and as the turnover of the Appellants was more than Rs.4 crores in each of the Financial Year from 2010-11 to

2014-15, they were not eligible for SSI Exemption.

2. A Show Cause Notice dated 02.06.2016 was issued to the Appellants demanding Central Excise duty of Rs.7,16,25,246/- alongwith interest and penalty. The Show Cause Notice was adjudicated by the impugned order dated 15.09.2017 confirming Central Excise duty of Rs.1,65,08,549/- alongwith equal penalty; appropriating Rs.15 lakhs paid by the Appellant; imposing equal penalty and penalty of Rs.5,000/-

under Rule 27 of the Central Excise Rules, 2002.

3. The Adjudicating Authority has also imposed a penalty of Rs.10,00,000/- on Shri Vaibhav Bhargava, Director of the Appellant. Hence, this appeal.

4. Shri B.L. Narasiman learned counsel for the Appellant submits that the learned Adjudicating Authority dropped the demand to the extent of Rs.5,50,21,697/- and confirmed the demand of Rs.1,65,08,549/- classifying the products like Printed carton and boxes, Invitation cards, Greeting cards, Printed tags, printed sheet tags cards, Letterhead pads, Calendars, printed estimate pads, printed cash memos etc.

5. Learned Counsel submits that the Appellants activity does not amounts to manufacture; the Hon’ble Supreme Court held in the case of South Bihar Sugar Mills Ltd. v. Union of India, 1978 (2) ELT 336 (SC) that the Central Excise Act charges duty on manufacture of goods. The word “Manufacture” implies a change but every change in the raw material is not manufacture. There must be such a transformation that a new and different article must emerge having a distinctive name, character and use; he also submits that the Hon’ble Supreme Court in the case of Union of India v. Delhi Cloth and General Mills Co. Ltd., 1977 (1) ELT 199 (S.C.) held that “Manufacture” means bringing into existence a new substance known to the market. He submits that in the impugned case the activity undertaken by the Appellants does not bring