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TMI Blog1997 (2) TMI 298X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 11-5-1984 issued under sub-rule (1) of Rule 56AA of Central Excise Rules Government gave benefit for excess clearance when compared to the base year for, among others, paper and paper board. In computing the base clearance, however, the authorities below held that quantity used in waste paper which was not cleared outside the factory but which was repulped within the factory should be taken into account in computing the total clearance as such quantity which was repulped in factory was used for captive consumption. In other words Collector (Appeals) held that quantity used captively could not be excluded while computing the base clearance. 3. The reference is to excisable goods cleared from the factory for home consumption. Goods cap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ans consumption within the country no matter in which place in the country and how the goods are consumed. The contention that clearance for the purpose of notification must be from and not within the factory has no force in view of the amended Rule 9 and 49 wherefrom it is absolutely clear that the goods manufactured in the factory are to be deemed to have been removed from such place or premises even if for captive consumption. The Tribunal further held that if goods removed for captive consumption cannot be considered to be goods for home consumption there would be no question of levying duty on such goods. Tribunal held that goods removed even for captive consumpton are undoubtedly the goods removed for home consumption. 6. It is true ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on indicates the types of goods in respect of which captive consumption within the factory is not be taken into account. Since captive consumption in case of specific goods has been excluded the only reasonable inference that can be drawn is that captive consumption in respect of goods not specifically indicated in the Notification has to be taken into account in computing clearances. 9. In view of the Tribunal s clear orders in case of Rainbow Paper Industries and indication given in clause (ii) and (vii) of the Notification we have to hold that quantity captively consumed is necessarily to be taken into account in determining the base clearance. 10. We however find the alternate argument as more appealing. It is contended before us th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same publication put into a beater for manufacture of paper. The book further defined dry broke which is produced at the dryers, calender, reel or winder or in the finishing room. There is also winder broke which, the publication records, includes shavings trimmed off edges of the sheet, paper spoiled in starting the winder or mending breaks and defective paper cut from the rolls. Cutterbroke consists of trimmings, dirty paper on the outside of rolls, wrinkled paper, etc. Sheet calender broke consists mainly of turned-in corners; and, wrinkles is another variety of broke as also broke in pasting. Another book published by the same company and titled Papermaking and Paperboard Making (Edited by Ranald G. Macdenald, and John N. Frank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduced after the machine reel. The method of treatment of the broke and how it is conveyed back to the stock preparation plant depends largely on whether it is wet or dry broke. Couch broke is ashed off the underside of the machine wire by a water shower just after the couch roll or the forward drive roll. It falls into a pit below the couch roll known as the couch pit. The couch pit usually has an agitator which breaks up the broke and it is diluted by the shower water. From here it is pumped back to the stock preparation plant. Press broke can be handled in this way or in the same manner as dry broke. Dry broke is usually collected on a conveyor system and fed to a disintegrator that is located underneath or to one side of the dryer sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the broke disintegrator or storage nest but this can present problems. Broke should be used so far as possible to produce the same grade of paper as that from which it originated although it is sometimes necessary to use it for a different grade. Even so, the dry paper after disintegration does not produce stock with the same properties as if originally had; it is usually freer and weaker. Dry broke containing wet-strength paper or contraries such as film or foil added in a converting operation must have special treatment such as that given to secondary fibre." 13. Such scrap paper even if it fetches some value cannot be considered as excisable. Since such broke cannot be considered as excisable goods as described in the relevant n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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