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2024 (5) TMI 126 - CESTAT AHMEDABADBenefit of nil rate of duty in terms of Notification No. 23/1998-CE dated 01.08.1998 as amended - clearance of newsprint - Non-compliance with the conditions of Notification No. 23/1998-CE dated 01.08.1998 - clearance of goods to the unregistered depots which cannot be defined as “place of removal” - finished goods have not been cleared against purchase order as required under the Notification - HELD THAT:- The first requirement is that the subject goods must be intended for newspapers. It is not the case of the department in the show cause notice that the goods are not intended for printing of newspapers - all the conditions of chapter heading 4801 of note 4 to chapter 48 and notification issued thereunder i.e. 23/1998-CE dated 01.08.1998 stands complied with. Therefore, merely because first the goods were cleared from factory to godown and then to newspaper, the conditions of the notification does not stand contravened. Similar issue has been considered by this Tribunal in the case of SRI VENKATESA PAPER & BOARDS LTD. VERSUS COMMISSIONER OF C. EX., MADURAI [2008 (7) TMI 169 - CESTAT, CHENNAI] where it was held that 'The expression “supplied against a purchase order placed upon such manufacturer by a newspaper” does not necessarily mean that the manufacturer should supply newsprint directly to a newspaper. What was intended by the amendment was that the supply of newsprint to a newspaper must be against a purchase order placed by the latter. It could either be direct or through a depot.' It is also observed that the factory is the place of removal as per Section 4 of Central Excise Act, 1944, however, at the same time any other place from where the goods is sold after removal from the factory, the said place is also a place of removal. Therefore, whether the goods are sold from the factory or from any other place from where the goods were sold, both are statutorily considered as place of removal. Therefore, the goods sold from godown to newspaper after clearance from the factory will not take a different colour as far as the classification of goods under 4801 read with Notification No. 23/1998-CE. Thus, nil rate of duty is rightly and legally available to the appellant - the impugned order is set aside - appeal allowed.
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