2003 (3) TMI 466 - AT - Central Excise

Summary

Issues: Interpretation of Notification No. 67/82-C.E., dt. 28-2-1982 regarding exemption of duty on printed cartons made from duty paid base paper.

Analysis:
1. The issue in this case revolves around the interpretation of Notification No. 67/82-C.E., which exempts printed cartons, boxes, containers, and cases from excess excise duty if made from duty paid base paper. The notification excludes manufacturers availing special procedures under Central Excise Rules from this exemption.

2. The appellant used duty paid LDPE coated paper in manufacturing composite containers and claimed exemption under the notification. They argued that not taking credit for duty on the base paper should not disqualify them from the exemption.

3. While the facts were undisputed, the dispute centered on the interpretation of the notification. The appellant's advocate contended that the proviso to the notification did not apply to their case, while the department argued that the goods were not made from base paper, thus ineligible for the exemption.

4. The Notification No. 67/82 specifies a lower duty rate for products made from duty paid base paper or paper board, provided no credit for input duty is taken. The proviso prevents manufacturers from claiming both the lower rate and input duty credit simultaneously.

5. The appellants sought both the lower duty rate and credit for duty paid on the input, claiming their product indirectly used duty paid base paper. However, the tribunal found this attempt to claim double benefits inadmissible.

6. The tribunal concluded that the appellants were not entitled to the exemption as they did not use duty paid base paper in manufacturing the final goods. Indirect use of duty paid base paper through LDPE coated paper did not qualify them for the exemption or the proviso's benefits.

7. Consequently, the appeal was dismissed based on the tribunal's interpretation of the notification and the ineligibility of the appellants for the claimed exemption.