9911796707
TMI Blog1993 (10) TMI 209X X X X Extracts X X X X X X X X Extracts X X X X ..... . The appellants are manufacturers of paper, an excisable commodity specified in Item 17 of the Central Excise Tariff Schedule (CET). During the material period, they used to manufacture wrapping paper as well as other sorts of paper. Duty used to be paid at the same rate both on the paper wrapped with the aid of wrapping paper as well as on the wrapping paper. The Departmental authorities appear to have considered that this practice was not correct and that since the wrapping paper and the wrapped paper fell under different sub-item of the tariff item, they should be assessed separately at the rates appropriate to them. On 10-2-1972, the Supdt. issued directions to this effect which the appellants started following. On 12-10-1972, the Supd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o separate price is charged for the wrapper which is included in the price of the ream of paper, the contents. (ii) Duty was paid on the weight of the wrapper paper at the rate applicable to the contents paper. In the process, and depending on the difference between the duty rate on the wrapper paper and the contents paper, the short levies and excess levies on wrapper paper would have got cancelled. (iii) The appellants were not seeking exemption from duty altogether on the wrapper paper, as observed by the Asstt. Collector. (iv) Any revision in assessment practice which worked to the disadvantage of the assessee could be enforced only respectively. It could not be enforced retrospectively even for period of one year prior ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said wrapping paper is not in consonance with Rule 9 and, therefore, the impugned demand was hit by limitation under Rule 10/Section 11-A of the Act. In short, the argument was that the impugned demand was not enforceable despite the retrospective amendment of Rule 9 and 49. 7. Appearing on behalf of the Respondent, Shri A.K. Jain, the learned Sr. Deptl. Representative submitted that packing and wrapping paper was classifiable under Item No. 17(3) CET. In fact, the classification list filed by the appellants themselves showed the classification of packing and wrapping paper as 17(3) CET. Whatever may have been the practice followed, it was not correct to assess wrapping paper as if it was part of the contents of the ream. The Deptt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be charged the duty as such or only along with and at the same rate as the paper packed or wrapped. Section 3 of the Central Excises Salt Act lays down that there shall be levied and collected in such manner as may be prescribed duties of excise on all excisable goods as, and at the rates, set forth in the First Schedule. We have already seen that packing and wrapping paper was specified in the said Schedule. 9. Rule 9 at the material time provided that no excisable goods shall be removed from the place of manufacture whether for consumption or export, or the manufacture of any other commodity in or outside such place, without payment of the duty leviable thereon. The amendment to Rule 9 by Notification No. 20/82, dated 20-2-1982 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufactured condition is not in consonance with the requirements of Rules 9 and 49 amended and made retrospective. This contention again is not well founded. The amendments to Rules 9 and 49 have been given retrospective effect by Section 51 of the Finance Act, 1982 which inter alia provides that recovery shall be made all such duties of excise (i.e. duty leviable on excisable goods removed within the factory of production for consumption or utilisation in the manufacture of any other commodity) which have not been collected as if the amendments referred to in sub-section (1) had been in force at all material times. This provides a complete answer to the appellants contention in this regard. 10. The other contentions of the appellants need ..... X X X X Extracts X X X X X X X X Extracts X X X X
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