2007 (3) TMI 515 - AT - Central Excise

Summary

Issues involved: Appeal against Commissioner (Appeals) order regarding eligibility for duty exemption on manufactured paper cups under Central Excise Tariff Act, 1985.

Facts: The appellant manufactures branded and unbranded paper cups for holding ice-cream, claiming duty exemption under Notification 20/94. Adjudicating authority and Commissioner (Appeals) held the product ineligible due to exclusion clause.

Appellant's submissions: Advocate argues exclusion applies only to laminated sheets, not relevant to cup manufacturing process. Cites judgments supporting interpretation. Claims no compression involved in manufacturing.

Respondent's argument: Product involves paper sheets with plastic coating, heat compression, and squeezing together. Asserts compression is part of the process.

Tribunal's analysis: Examines tariff descriptions before and after amendment by Notification 144/94. Finds appellant's claim of no compression untenable. Commissioner (Appeals) findings support exclusion under the notification.

Commissioner (Appeals) findings: Exclusion clause covers more than one product, not limited to decorative laminates. Describes manufacturing process involving paper sheets and plastic coating, concluding product falls under exclusion clause.

Decision: Tribunal upholds Commissioner (Appeals) findings, dismissing the appeal for lack of merit. However, sets aside penalty and remands for quantifying duty based on cum-duty price. No grounds to disturb Commissioner (Appeals) decision.

Conclusion: Appeal disposed of on 28-3-2007 by Appellate Tribunal CESTAT, Ahmedabad.