9911796707
TMI Blog1996 (9) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... uffer duty once more as this way the amount of cess would exceed 1/8th% ad valorem. I do not find any stipulation to this effect in the Notification of the Ministry of Industries No. S.O. 87(E), dated 3-3-1987. In this view of the matter, I find no merit in the appeal of the appellants and while upholding the impugned order, I reject the same. 2. The facts of the case in brief, are that the appellants are engaged in the manufacture of various types of paper and paperboard falling under Chapter No. 48 of the CETA, 1985. The appellants had cleared the papers of coated variety namely, Print Cote Chrome Paper and Pearl Glow Art Paper eligible for exemption under Notification No. 49/87, dated 1-3-1987 without payment of cess as was alleged to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issions and the arguments of the appellants, held that cess was payable and confirmed the demand for duty in respect of nine show cause notices only show cause notice dated 22-9-1987 demanding duty amounting to Rs. 14,672.17 was dropped due to its being time barred. 3. Shri G. Shiv Dass, the learned Advocate appearing for the appellants submitted that the Ministry of Industry s Order No. S.O. 862(E), dated 27-10-1980 was amended by the Ministry of Industry s Order No. S.O. 87(E), dated 3-2-1981; that this Notification in Clause 2(b) provided : (b) for the entries in Column (1) of the Table, the following shall be substituted namely :- `Paper and Paper Board, all sorts (including newsprint, paste board, mill board, straw board, card b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that it was clarified in Para 2 of this letter that cess is not leviable on waxed paper, manufactured by a paper converter in his premises after buying base paper from the market. These views are based on the advice of Ministry of Law. He submitted that the admitted position was that the appellants purchased base paper from the market; that this base paper was duty paid; that this paper was coated by the appellants and thus was a converted paper and that since cess duty was paid on the base paper according to the clarification of the Ministry of Industry, the coated paper described as `Print Cote Chrome Paper and `Pearl Glow Art Paper is not chargeable to cess duty again. He submitted that having regard to this clarification, their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and collected under Section 3 of the CESA, 1944. It is also a fact that cess is levied and collected under sub-section (1) of Section 9 of the Indus- tries (Development and Regulation) Act, 1951. It is also a fact that an exemption Notification issued under sub-rule (1) of Rule 8 does not automatically cover the exemption of cess unless there is a mention that the exemption under Notification issued under sub-rule (1) of Rule 8 will also be applicable to exemption of cess. A scrutiny of the Notification No. 63/82 and Notification No. 49/87 reveals that there is no mention that exemption under these notifications shall also apply to exemption of cess levied under sub-section (1) of Section 9 of the Industries (Development and Regulation) A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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