1999 (3) TMI 146 - AT - Central Excise

Summary

Issues:
- Whether the benefit of Notification No. 25/84-C.E. is available to the printing and writing papers manufactured by M/s. Associated Pulp & Paper Mills Ltd.

Analysis:
1. The issue in this appeal was whether the printing and writing papers manufactured by M/s. Associated Pulp & Paper Mills Ltd. were eligible for the benefit of Notification No. 25/84-C.E., dated 1-3-1984. The Department contended that the pulp used by the Respondents contained more than 50% by weight of softwood/hardwood due to the presence of wood in waste paper. However, the Assistant Collector and the Collector (Appeals) held that the Respondents fulfilled the conditions of the notification by using 55% pulp obtained from waste paper.

2. The Department argued that for the exemption under Notification 25/84, less than 50% of the basic ingredients of pulp should be other than bamboo, hardwood, reeds, or rags. They claimed that the waste paper used by the Respondents contained wood, making the total wood content in the pulp exceed 50%. However, the Tribunal found that the Notification did not exclude the use of waste paper in manufacturing paper for availing the benefit. The Tribunal emphasized that the paper was manufactured out of pulp containing not less than 50% by weight of pulp made from materials other than specified ones.

3. The Tribunal rejected the Department's argument that the presence of wood in waste paper should be considered in determining the eligibility for the notification. The Tribunal highlighted that the Department cannot exclude the use of waste paper by implication when the Notification does not explicitly prohibit it. Moreover, the Tribunal referenced a clarification by the Central Board of Excise and Customs, stating that raw materials not covered under specific categories are considered unconventional for granting exemptions under similar notifications.

4. Considering the clarification and the language of Notification No. 25/84, which is similar to other notifications providing concessional rates for paper manufacturing, the Tribunal concluded that the Respondents met the conditions specified in the Notification. The Tribunal emphasized that the Department is bound by the clarification and cannot claim that the use of waste paper disqualifies the paper from the notification's benefits. Consequently, the appeal filed by the Revenue was rejected, upholding the decision of the Collector (Appeals).

In conclusion, the Tribunal ruled in favor of M/s. Associated Pulp & Paper Mills Ltd., stating that they were entitled to the benefit of Notification No. 25/84-C.E. for the printing and writing papers manufactured using pulp from waste paper, as they satisfied the conditions specified in the notification.