2004 (8) TMI 165 - AT - Central Excise

Summary

Issues:
Whether paper manufactured using waste paper is eligible for specific notifications exempting certain raw materials.

Analysis:
The appeal in this case revolved around the eligibility of paper manufactured using waste paper for the benefit of specific notifications. The appellants argued that waste paper should be considered eligible for exemption based on relevant circulars and judgments. They cited Circular No. 40/40/94-TRU and Board's Letter F. No. 61/16/97-C.Ex. 4 to support their claim. Additionally, they referenced cases like CCE, Raipur v. Orient Paper Mills and CCE, Hyderabad v. ITC Bhadrachalam Paper Boards where waste paper was treated as exempted raw material. The appellants also relied on judgments such as CCE, Ahmedabad v. Associated Pulps & Paper Mills and M/s. Sri Vinayaka Paper Boards Pvt. Ltd. to strengthen their argument. They emphasized that the Board's Circular has a binding effect on authorities, as established in previous Supreme Court cases.

The consultant representing the appellants submitted written arguments along with citations and the Board's Circular, asserting that the issue was clearly in their favor based on the precedents and circulars mentioned. The consultant sought the allowance of the appeal due to the favorable position supported by legal references.

Upon reviewing all materials presented, the Senior Departmental Representative (SDR) acknowledged that the issue was indeed covered but reiterated the department's stance. The SDR, after examining the evidence, agreed that the issue had sufficient legal backing but maintained the department's position on the matter.

After careful consideration and examination of the records, the Tribunal found that the appellants had indeed used waste paper in the manufacturing process of paper and paperboards. Referring to the Board's Circular, the Tribunal clarified waste paper as an unconventional raw material exempted under the relevant notification. The Tribunal also highlighted previous cases where waste paper was treated as an exempted raw material, supporting the appellants' claim. By following the precedents set by the cited judgments and the Board's Circular, the Tribunal set aside the impugned order and allowed the appeal, granting consequential relief to the appellants.