2008 (7) TMI 169 - AT - Central Excise

Whether, for the period from 31-8-1995 to 19-11-1995, the benefit of Notification No. 60/88-C.E., dated 1-3-1988 as amended by Notification No. 109/95-C.E., dated 31-8-1995 was deniable to them in respect of newsprint supplied by them to a registered newspaper through a depot held that there is nothing in the text of the amended proviso which can be construed as a bar against indirect supply of newsprint by the manufacturer of a newspaper for the purpose of exemption under the Notification

Summary

Issues:
Interpretation of Notification No. 60/88-C.E. as amended by Notification No. 109/95-C.E. regarding the supply of newsprint to a registered newspaper through a depot.

Analysis:

1. The appeal involved a question of whether the benefit of Notification No. 60/88-C.E., dated 1-3-1988 as amended by Notification No. 109/95-C.E., dated 31-8-1995 was deniable to the assessee for the period from 31-8-1995 to 19-11-1995 in relation to newsprint supplied to a registered newspaper through a depot. The lower authorities had denied the benefit based on the amended proviso to the Notification, which required newsprint to be supplied directly to a newspaper against its purchase order placed upon the manufacturer.

2. Prior to the amendment, the exemption under the Notification was subject to authorization by the Registrar of Newspapers of India for the publication of the newspaper. The department's interpretation post-amendment was that the manufacturer of newsprint should supply directly to a newspaper against its purchase order. However, the appellants contended that such clearances through a depot were permitted in the past and the amendment did not necessitate a change in practice.

3. The Tribunal, after considering both sides, interpreted the amended proviso to mean that the supply of newsprint to a newspaper must be against a purchase order placed by the newspaper, whether directly or through a depot. The Tribunal found no explicit restriction in the amended proviso against the indirect supply of newsprint through a depot by the manufacturer. Consequently, the Tribunal set aside the impugned order and allowed the appeal in favor of the assessee.

This judgment clarifies the interpretation of the Notification regarding the supply of newsprint to a registered newspaper and affirms that the benefit of exemption can be availed even if the supply is made through a depot, as long as it is against a purchase order placed by the newspaper.