9911796707
TMI Blog2003 (9) TMI 369X X X X Extracts X X X X X X X X Extracts X X X X ..... r continuous to be paper for printing and writing. The ratio of the decision of this Tribunal in CCE v. Shree Vindhya Paper Mills [ 1988 (1) TMI 175 - CEGAT, NEW DELHI] is directly applicable in the present case. The view taken by the Commissioner in the impugned order that the assessee is manufacturing two products, namely, uncoated paper and coated paper cannot be accepted. Uncoated paper emerges at one stage of the manufacturing process of coated paper. A reading of the exemption notification would clearly show that it grants an exemption from payment of duty on paper and paper board articles made therefrom upto clearance of 3500 MTs, when the same is manufactured from the stage of pulp and using non-conventional raw material. The object ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subject to the condition that the pulp from which such paper is manufactured should have been made out of not less than 75% of non-conventional raw material. Admittedly the appellants satisfied the condition regarding required nature of raw material. It is also not disputed that the appellants are entitled to exemption under Notification No. 3/2001-C.E. on the first aggregated clearance of 3500 MTs in any financial year and that once the clearance exceeds 3500 MTs, they are entitled to discharge duty liability on paper @ 16% ad valorem. 3. The show cause notice dated 2-5-2002 proposed to demand duty on the clearance of uncoated paper captively consumed. It is alleged that uncoated paper and paperboard manufactured by the assessee and consum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision it was observed that in spite of the process of coating the papers remain printing and writing paper then it cannot be said that the processes have brought about a change in name, character or use and if that be so no manufacture having taken place the two descriptions of paper would not attract Central Excise duty liability. On coating uncoated paper and article with different name commercially may have emerged but it is not a distinct article with different character or use. Therefore, no manufacturing process is involved while uncoated printing and writing paper is coated. It is, therefore, contended that no duty demand can be made at the uncoated stage. According to the appellants they are liable to pay duty at the stage at whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mely, uncoated paper and coated paper cannot be accepted. Uncoated paper emerges at one stage of the manufacturing process of coated paper. A reading of the exemption notification would clearly show that it grants an exemption from payment of duty on paper and paper board articles made therefrom upto clearance of 3500 MTs, when the same is manufactured from the stage of pulp and using non-conventional raw material. The objective is apparently to promote use of non-conventional raw material in making paper, paperboard and articles of paper and paperboard. If the interpretation sought to be given by the Revenue is accepted, it will defeat the very objective. Under these circumstances, we find no reason to uphold the view taken by the Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
