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TMI Blog1987 (9) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... as out of fluted gummed layers of kraft paper with a layer of bituminised kraft paper fixed on one side and kraft paper layer on the other side. The appellants claimed the benefit of Notification No. 142/82, dated 22.4.1982 under which corrugated board cartons made out of duty paid kraft paper were exempted from duty. The lower authorities approved the classification list filed in the above terms but later demanded duty for the reason that the appellants had produced cartons using bituminised kraft paper whereas the notification covered only the use of kraft paper as such. His findings in this regard are as under :- It is very clear that Notification 144/82 was not available to the assessee as the corrugated Paper Boxes manufactured by M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch corrugated board cartons as were made out of kraft paper alone. (3) The very fact that a successor Notification No. 279/82 was issued specifically providing for exemption for cartons in the making of which bituminised paper was used, showed the Notification No. 144/82 did not cover the same earlier. (4) The Tribunal in their decision in the case of M/s. Guardian Plasticote Ltd., Calcutta v. Collector of Central Excise, Calcutta and Others [1986 (24) E.L.T. 542 (Tribunal)] has held that converted paper was a new product having distinct name, character and use and therefore bituminised paper on the same logic was not the same as kraft paper for the purposes of the notification. The Tribunal, he pointed out, has held as under :- The p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e end-product from the benefit of notification, then the notification was not workable as the cartons could not be produced without the process of laminations and bonding of the layers of kraft paper. (4) In terms of the notifications, 1/3rd of other materials for making the cartons was permissible and bitumen used was not in excess of 1/3rd of the weight of the carton. 5. Shri Chakrabarti pleaded in reply that bitumlnised paper was not the same as kraft paper as ISI specification for kraft paper did not cover bituminised paper. He also pleaded that the plea of the respondents that other materials to the extent of 1/3rd of the weight of the ........ could be used ........ in the terms of the proviso to the notification for the strawboar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and straw board cartons. If made wholly out of straw board. 3. Corrugated board boxes and corrugated board cartons If made wholly out of kraft paper or out of paper and paper board of the type known as kraft liner or corrugating medium, whether or not in combination with mill board, or straw board Explanation :- For the purposes of this notification - (a) mill board means any unbleached homogenous board, having a thickness exceeding 0.50 millimetre and made out of mixed waste papers with or without screenings and mechanical pulp but without any colouring matter being added thereto; (b) straw board means a board made wholly or predominantly from partially cooked unbleached straw or bogasse or grasse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n benefit, it is seen was available for the use of specified input and for specified output obtained after subjecting the said input to various processes. For the notification to be workable it cannot be denied that certain processes which are required for the production of the cardboard cartons are permissible. In this view of the matter transformation of the kraft paper by bonding and lamination etc. into a different form by using bonding materials is a technical necessity. It may well be that during the manufacturing process an intermediate product having different characteristics than the input paper may emerge and which by itself be dutiable, but this cannot constitute a reason for disentitling the end-product from the benefit of the n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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