2018 (1) TMI 616 - AT - Central Excise

Whether appellant are entitled to claim the benefit of nil rate of duty in respect of paper products classified under Heading 4801.00 of the Schedule to the Central Excise Tariff Act, 1985? - Held that - the issue is squarely covered by the ruling of this Tribunal - Northern Bench, New Delhi in the case of Nichiketa Papers Ltd. Versus commissioner of Central Excise, Chandigarh-I 2004 (5) TMI 114 - CESTAT, NEW DELHI , where it was held that the appellant should be treated as having been included in the Schedule w.e.f. 23-12-1999 for the purpose of the benefit of Nil rate of duty under the schedule to the Central Excise Tariff Act - appeal allowed - decided in favor of appellant.

Summary

Issues Involved:
Claiming nil rate of duty for paper products under Heading 4801.00 of the Schedule to the Central Excise Tariff Act, 1985 based on inclusion in Schedule I of the Newsprint Control Order.

Analysis:

Issue 1: Entitlement to Nil Rate of Duty
The main issue in this appeal was whether the appellants were entitled to claim the benefit of nil rate of duty for paper products classified under Heading 4801.00 of the Central Excise Tariff Act, 1985, as newsprint. The Central Government's notification defined "newsprint" as paper intended for printing newspapers and manufactured by a specified newsprint manufacturer. The appellants applied for inclusion in Schedule I of the Newsprint Control Order, and after registration, they claimed the benefit of nil rate of duty. The Tribunal referred to a previous decision and held that the benefit should accrue from the date of application, in line with the principle of granting exemptions to eligible units without delay.

Issue 2: Application of Previous Supreme Court Decision
The appellants relied on a Supreme Court decision regarding the entitlement to benefits based on the date of application for registration. The Supreme Court had emphasized a liberal approach in granting exemptions to small-scale industrial units, extending benefits from the date of application. The Tribunal found merit in applying this principle to the present case, considering the timely application by the appellants and the subsequent communication acknowledging their inclusion in the Schedule I of the Newsprint Control Order.

Conclusion:
In conclusion, the Tribunal allowed the appeal, setting aside the original order and granting the appellants the entitlement to the benefit of nil rate of duty for the specified paper products. The decision was based on the application of legal principles regarding the timing of benefit accrual and the interpretation of relevant notifications and orders. The appellants were directed to receive any consequential relief as per the law.