2009 (5) TMI 742 - AT - Central Excise

Summary

Issues involved: Appeal against order extending exemption under Notification No. 23/98 to newsprint producers; eligibility of Unit II for exemption.

In this case, the Revenue appealed against the order of the Commissioner (Appeals) regarding the extension of exemption under Notification No. 23/98 to the respondents, who are newsprint producers. The dispute centered around whether the exemption should only apply to Unit I of the respondent mill and not to Unit II, which had also availed the exemption.

The Appellate Tribunal examined Notification No. 23/98, which defines 'newsprint' for the purposes of the Central Excise Tariff Act. The notification specifies that newsprint must be intended for the printing of newspapers and must be manufactured by a newsprint producer listed under Schedule I of the Newsprint Control Order, 1962. Additionally, the newsprint must be supplied against a purchase order from a registered newspaper. The Tribunal noted that the respondent mill met both conditions as specified in the notification.

The Tribunal observed that the respondent mill fulfilled the requirements outlined in the notification. The order issued under the Essential Commodities Act and the Newsprint Control Order, 1962, identified the respondent as a newsprint producer. Consequently, the Tribunal concluded that there was no deficiency in the decision to grant the exemption to the respondent paper mill. Therefore, the Tribunal upheld the order of the Commissioner (Appeals) and dismissed the Revenue's appeal.