2015 (11) TMI 712 - AT - Central Excise

Duty demand - option to avail exemptions - Clearance of goods under serial No. 93 of Notification No. 4/2006-CE dated 01/03/2006 - Imposition of penalty - Held that - s in view of the above mentioned two conditions, it cannot be said that serial No.90 provides absolute exemption to paper and paper board or articles made therefrom manufactured, starting from the stage of pulp, in a factory, and such pulp contains not less than 75% by weight of pulp made from materials other than bamboo, hard woods, soft woods, reeds (other than sarkanda) or rags. - appellant-assessees cannot be forced to pay duty as per serial No.90 of Notification 4/2006 and they have option to pay the duty under other numbers, viz. 91 and 93. Issue involved in this has already been decided by this Tribunal in the case of Balkrishna Paper Mill Ltd. & Ors. vs. Commissioner of Central Excise 2015 (11) TMI 210 - CESTAT MUMBAI - we are holding on merits in favour of the appellant-assessee, there is no question of recovery of interest or imposition of penalty - Decided in favour of assessee.

Summary

Issues:
Interpretation of Notification No. 4/2006-CE for craft paper manufacturing.

Analysis:
The case involved a dispute regarding the classification of craft paper under Notification No. 4/2006-CE. The Revenue argued that the goods should be classified under serial No. 90, while the appellants contended that they should be classified under serial No. 93. The Commissioner passed an order debiting Cenvat credit and imposing penalties on the appellants. However, the appellants filed an appeal against this order, challenging the classification and the consequent liabilities.

Upon hearing both sides, the Tribunal referred to a previous decision in the case of Balkrishna Paper Mill Ltd. & Ors. vs. Commissioner of Central Excise, where the relevant conditions of Notification 4/2006 were discussed. Serial No. 90 prescribed a nil rate of duty with specific conditions, including a limit on the quantity cleared for home consumption and a restriction on availing certain exemptions. The Tribunal concluded that the appellants could not be compelled to pay duty under serial No. 90 and had the option to pay duty under other numbers like 91 and 93. Therefore, the Tribunal held in favor of the appellants, stating that there was no basis for recovery of interest or imposition of penalties.

In light of the previous decision and the interpretation of the notification, the Tribunal allowed the appeal filed by the appellant-assessee and dismissed the appeal filed by the Revenue. The judgment clarified the classification of craft paper under the relevant notification and upheld the appellants' position, relieving them from the liabilities imposed by the Commissioner's order.