9911796707
TMI Blog1985 (9) TMI 245X X X X Extracts X X X X X X X X Extracts X X X X ..... cts of the case, in brief, are that M/s. Sunrise Packaging Company, the appellants, are engaged in the manufacture of paper and paper board falling under Item No. 17(2) of the First Schedule to the Central Excises and Salt Act, 1944 (CET, for brevity s sake). During the material time the appellants were engaged in production inter alia 5 Ply corrugated boards with one layer of bitumenised paper. The appellants claim that such board attracted duty exemption under Central Excise Notification No. 46/71, dated 24-4-1971. The department s allegation is that the appellants manufactured 14,997 pieces weighing 25,940.95 kgs. of corrugated boards. The fifth Ply of which was of Hessian laminated with kraft paper obtained by bonding a layer of hessian ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d also set aside the penalty imposed by the Collector on the appellants. 2. We have heard Shri Pramod Kumar Harlalka for the appellants and Shri V. Lakshmikumaran, Senior Departmental Representative for the respondent. Shri Harlalka submitted that hessian laminated bitumenised paper was nothing but bitumenised paper falling within the purview of Serial No. 3 of Notification No. 46/71 read with clause (b) of its second proviso and Notification No. 159/78. In this connection he referred to Indian Standard Institution specification No. 1398-1968 which lays down quality specification for bitumen laminated, water proof packing paper. There were three types described in the specifications and type 3 was water proof paper manufactured with one p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 71 Central Excise dated 24-4-1971 as amended by Notification No. 159/78, dated 26-8-1978, which we are called upon to construe reads as follows: In exercise of the powers conferred by Rule 8(1) of the Central Excise Rules, 1944 and in supersession of the notification of the Government of India in M.F. (DR and 1) 135/67 C.E., dated the 3rd July, 1967, the Central Government hereby exempts corrugated board of the description given in column (2) of the Table hereto annexed and falling under sub-item (2) of Item 17 of the said Schedule, from so much of the duty of excise leviable thereon as it in excess of duty specified in the corresponding entry in column (3) of the said table - Sl. No. Description of corrugated board D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paper board of the type known as kraft liner of corrugating medium of a substance equal to or exceeding 65 grammes per square metre, or (b) partly out of Kraft Paper referred to in clause (a) sad partly out of bitumenised paper or duplex board, on which the appropriate duty, if any, has been paid, then such corrugated board shall be exempted from the whole of the duty of excise leviable thereon." We are concerned with Serial No. 3 of the Table in the notification and clause (b) of the second proviso. 5. It is a common position before us that the product in question falls under Item No. 17(2) CET. The simple question is whether it could be said to have been manufactured partly out of kraft paper of the type referred to in clause (a) o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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