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TMI Blog2002 (10) TMI 592X X X X Extracts X X X X X X X X Extracts X X X X ..... re of paper and paper boards falling under Chapter 48 of the Central Excise Tariff. They were issued a show cause notice raising demands of duties for the period from 1-3-2000 to 11-3-2000 and from 1-4-2000 to 15-7-2000 alleging that the exemption availed by the appellant in respect of the paper waste and bleached liquor captively consumed by them under the provisions of Notification No. 67/95-C.E., dated 16-3-95 was not available inasmuch as during the relevant period they had cleared their final product without payment of duty and under the provisions of exemption Notification No. 6/2000, dated 1-3-2000. The appellants, during the adjudication before Commissioner denied the allegations and raised the following grounds :- (i) Bleach Li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - 1986 ( 24) E.L.T. 169 (S.C.) (b) Anil Starch Product Ltd. v. CCE - 1997 (89) E.L.T. 21 (S.C.) As regards Waste and Scrap and Paper Board commonly known as Broke the same is generated as an inevitable product which is recycled and fed back into the continuous process of manufacture of Pulp and Paper . Such Broke is never sold in the Market. The Broke is not a Finished Commodity and it has no RG-1 stage, this being a Product continuously generated and recycled in the process of manufacture of Paper. If duty is charged on the Broke , then charging duty against on the paper generated out of the Broke will result in double payment of duty which is not contemplated under the Central Excise Act. Broke i.e. Waste Scrap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The said order is impugned before us. 5. We have heard S/Shri S.P. Majumdar, B.J. Mookherjee, B.C. Debnath, D.K. Saha, B. Saha, Advocates for the appellants and Shri T.K. Kar, SDR, for the Revenue. 6. As regards the duty liability on brokes (waste and scrap of paper), the appellants have contended that the same is not excisable on account of its being a non-manufacturing activity as held by the Tribunal in the case of F. Pudumjee Co. Ltd. - 1998 (100) E.L.T. 455 (T) and Rohit Pulp Paper Mills Ltd. - 1989 (39) E.L.T. 458 (T). It was held in these judgments that brokes, post-pulp stage waste and scrap of paper does not attain a different name, character and use from that of pulp and the marketability of brokes cannot be established b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acture of paper and paper board would attract exemption under the provisions of Notification No. 10/96-C.E. The said circular is binding upon the Commissioner, who should have followed the same. As such we find that viewed from any angle duty is not to be demanded on waste and paper and scrap. 7. As regards the bleach liquor the appellants have contended that the same is not marketable on account of its short shelf-life. The appellants have clarified that there are different types of bleach liquors manufactured in the industry and while some of them may be marketable and stable but the bleach liquor manufactured by them is unstable and does not have long shelf-life so as to be marketed. They submit that inspite of the fact that a definite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Commissioner s order is silent on the same. Inasmuch as the duty has been demanded on the wrapping paper the appellants are entitled to the credit in respect of the input used in the manufacture of such wrapping paper subject to production of documentary evidences of payment of duty on the inputs, their receipt in the appellants factory and utilisation in the manufacture of wrapping papers. 9. As regards the personal penalties imposed upon the three appellants we find no justification for the same inasmuch as the issues are bona fide disputes on the question of law and cannot be attributed to any mala fide intention on the part of the appellants. Accordingly we set aside the penalties. 10. All the three appeals are disposed of in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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