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1999 (5) TMI 368

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..... nufacture of paper and paperboard falling under Chapter 48 of Central Excise Tariff Act, 1985. The respondents filed a classification list and claimed exemption under Notification No. 139/86-C.E., dated 1-3-1986 in respect of other uncoated paper and paper-board in rolls or sheets containing not less than 50% by weight of pulp made from materials other than bamboo, hardwood, softwood, reeds or rags. A show cause notice was issued to the respondents for disallowing the benefit of Notification No. 139/86-C.E. The adjudicating authority, after considering the submissions made by the respondents, approved the classification list allowing the benefit of Notification No. 139/86. The Revenue filed an appeal against the order of the adjudicating .....

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..... lly held that the factory of the appellant is having one plant for making wood pulp and bamboo pulp and have separate pulp plant for making paper and the wood pulp or bamboo pulp manufactured in the pulp plant is supplied to main plant and pulp plant through pipeline. In these circumstances, he submits that now the Revenue wants to deny the benefit of Notification on the grounds other than mentioned in the show cause notice. He, further, submits that the Notification No. 139/86 grants concessional rate of duty to the paper and paperboard on the condition that the said paper and paperboards are manufactured out of pulp containing not less than 50% by weight of pulp made from materials other than bamboo, hardwood, softwood, reeds or rags. He .....

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..... ards falling under sub-heading No. or Heading Nos. 48.49, 4811.40, 48.15 or, as the case may be, 48.16; (iii) the exemption contained in this notification shall apply only to paper and paperboards cleared from a factory having a plant attached thereto for making bamboo pulp or if total quantity of clearances of all varieties of paper and paperboards in the preceding financial year by or on behalf of a manufacturer from one or more factories or from a factory by or on behalf of one or more manufacturers, had exceeded 24.000 tonnes. 2. This notification shall come into force on the 1st day of April, 1986. (Notification No. 139/86-C.E., dated 1-3-1986 as amended by Notifications No. 260/86-C.E., dated 24-4-1986; No. 24/87-C.E., dated 1- .....

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..... cumstances, we find that the grounds, now taken before us, are not the allegations in the show cause notice for denying the benefit of notification. The Revenue cannot take entirely different grounds on facts at different stages for denying the benefit of notification to the appellant. In these circumstances, we do not find any merit in the appeal filed by the Revenue and the same is rejected. 11. [Assent per : S.K. Bhatnagar, President]. - I would only like to add and clarify that the basic question involved here was eligibility or otherwise to Notification No. 139/86. A perusal of the Order-in-Original shows that the ground on which the benefit was sought to be denied initially was that the pulp was not being manufactured in the same pl .....

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..... ad claimed the benefit only in respect of other uncoated paper or paper board falling under 4805.90 and 4804.20 that is other than the excluded headings and therefore the Collector did not upheld the departments contentions on this ground. 15. The ld. Collector has also mentioned that in his opinion waste paper is to be considered as one of the other materials i.e. other than bamboo, hard wood, soft wood, reeds and rags for the purpose of Notification No. 136/86 and also came to conclusion that in view of his observations and findings there was no need for the A.C. to specifically make any findings as regards the ratio of the people vis-a-vis. mill waste/products. As long as paper and paper boards were being manufactured from the pulp co .....

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