2001 (12) TMI 692 - AT - Central Excise

Summary

Issues:
Interpretation of exemption notification for newsprints supplied to a publication company for printing a directory.

Analysis:
The appellants manufactured newsprints and supplied them to a publication company for printing a directory, claiming exemption under a specific notification. The Commissioner initiated proceedings against the appellants, arguing that the directory did not qualify as a newspaper, thus denying the exemption and imposing a duty and penalty. The Commissioner's order was challenged in appeal.

The Commissioner contended that the directory did not meet the criteria of a newspaper, as it lacked news content, and therefore, the exemption did not apply. However, the appellants argued that the publication company was registered with the Registrar of Newspapers for India, fulfilling the conditions of the exemption notification. The appellants emphasized that the specific conditions of the notification were met, and therefore, they were entitled to the exemption.

Upon reviewing the arguments, the Tribunal observed that the only condition for exemption was that newsprints should be supplied against a purchase order from a registered newspaper, a condition fulfilled by the appellants. The Tribunal emphasized that the Commissioner exceeded the scope of the exemption notification by delving into the definition of a newspaper. Since no definition of a newspaper was provided in the Central Excise law, the Tribunal held that the exemption notification should be strictly interpreted based on its wording.

Therefore, the Tribunal set aside the Commissioner's order, ruling in favor of the appellants. The Tribunal concluded that the appellants had fulfilled the conditions of the exemption notification and should not be denied the exemption or subjected to a penalty. The appeal was allowed, providing consequential relief to the appellants if applicable.