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TMI Blog1991 (1) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... to the conditions set out therein. Yet if this plea is also not accepted, even so, mill wrapper manufactured and captively consumed inside the factory should be charged to duty only at the rate of Rs. 900/- per MT + 5% SED which was the rate approved by the Department in respect of mill wrapper in the Classification List effective from 2-4-1983. 2. Appeal No. 161/87 deals with the dispute pertaining to the non-approval of classification list No. 13/83 effective from 21-6-1983 and grant of exemption under the above said Notification, while Appeal No. 162/87 is directed against the confirmation of demand raised by Superintendent as short levy for Rs. 1,82,889.53 in terms of the disallowance of the claim of the benefit of the Notification in reference. 3. The Assistant Collector in his order dated 19-3-1984, while rejecting the grant of the benefit of Notification has observed that the classification list refers to Mill Wrapper . The Notification No. 142/81, dated 8-7-1983 applies to Unbleached Variety of Paper (Kraft Paper) and restricts to only Kraft Paper and not to Mill Wrapper. 4. The Collector (Appeals) has disposed of both the question of grant of exemption under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t cease to be so by giving of the name Mill Wrapper . 7. Shri Swaminathan, learned Consultant arguing for the appellants reiterated the grounds of appeal and submitted that the product in question satisfying the second portion of the Notification in question of containing not less than 75% of bagasse is not disputed by the Department, but the lower authorities had decided against them only on the basis of the Test result, furnished by Inspector by letter dated 21-2-1985 which states that As per IS: 4661-1986 (Glossary) terms used in paper Trade and Industry the sample does not satisfy the definition of Kraft Paper . By their letter dated 27-2-1985 they sought for full text of the letter written by Inspector to the Test Lab. containing the queries and also full text of the reply/report received by them from Chemical Examiner. Sh. Swaminathan pointed out that the Deptt. did not choose to give the details sought for by them. The Assistant Collector by his letter dated 13-12-1985 instead furnished the tour note of Shri L.C. Malik, Chief Chemical Examiner Grade I which is noted below :- Ellora Paper Mills, Tumsar Road was visited on 28-6-1985 and manufacture of unbleached Paper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apping paper made according to this process, which in fact is usually understood by the term kraft paper; kraft PULP, the variety of sulphate wood pulp made from spruce and other confiers, or even from SODA PULP, for the production of kraft wrapping paper, kraft Union , occasionally termed Duokraft , (Sw. Oceanpaper), a waterproof packing consisting of two or more (HPB 82) sheets of draft paper conjoined by a coating of tar, (sometimes called pitch paper ) or even latex (SH), kraft waterproof, paper treated with paraffin (see Waxed) asphalt or other material to render it water proof. Kraft waterleaf a lightweight absorbent paper made of sulphate pulp, unsized, used principally for Towelling (CDP). Kraft is also much used for strong Gummed tape and cable papers. See also coils and spinning. See Brown, insulating blankets, imitation kraft and semi-kraft. HM, (1933) II, 164 describes a good Kraft as follows : Pure Sulphate pulp with occasionally a small percentage of Kraft broke. No loading. Well-beaten, leaving fibres long. Good sizing, though the too sudden drying of the cylinders is liable to affect this. Great strength, which is the essential characteristic. Good rattle, ver ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lied on the ruling of the Supreme Court as rendered in the case of Hemraj Gordhandas v. H.H. Dave as reported in AIR 1970 SC 755 = 1978 (2) E.L.T. J350 (S.C.). He sought for remand of the matter, as the lower authorities had also not considered the question of set off, which maybe available to the appellants in other Notification referred to by them. 10. We have considered the rival submissions and perused the records. The question that arises for our consideration is (i) as to whether the mill wrapper is a variety of unbleached variety of paper; (ii) Does the Kraft Paper in bracket (Parenthesis) restrict only to this unbleached variety of paper; (iii) whether the appellants are entitled to any other relief; (iv) Whether the demand confirmed in Appeal No. E/162/87 is barred by time; (v) What relief? Point 1. The test result as furnished by the Inspector vide his letter dated 21-2-1985 with reference to test report dated 11-4-1984 does not disclose the nature of the paper or the content of the bagasse. What is to be considered for grant of concession is nature of paper being unbleached or having not less than 75% of bagasse. The test report merely says that :- As per IS : 466 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ached variety of paper with not less than 75% of bagasse content, the paper is said to have satisfied the condition of the Notification. The mention of Kraft paper in parenthesis in the Notification is an illustrative one. If the Notification was to restrict only to paper of high mechanical strength then the wording should have been unbleached variety of Kraft Paper . Moreover, Kraft Paper in bleached quality is also available. The uses of unbleached variety of Kraft Paper with other unbleached variety of paper being common; therefore, the reading of the Notification in question cannot be done in the strict sense, so as to give a narrow and restricted meaning, as given by lower authorities. It is well settled that the interpretation of the Notification should not be done in such a way as to make the Notification otiose or nugatory. So long as the plain meaning of the words could lead to interpretation to include varieties of unbleached paper and mill wrapper being one such, the benefit cannot be denied to the appellant. The appellants have submitted that the Department has not disputed the bagasse content being not less than 75%. In that event, the benefit of the Notification in q ..... X X X X Extracts X X X X X X X X Extracts X X X X
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