9911796707
TMI Blog1999 (9) TMI 908X X X X Extracts X X X X X X X X Extracts X X X X ..... ls are mentioned separately under Tariff Heading 47.01. That being so, the benefit of exemption available to Chemical wood pulp, semi-chemical wood pulp and pulps of other fibrous cellulosic materials, the benefit of ex emption notification will not be available. 2. On limitation also the ld. Collector held : I hold the act of suppression is, therefore, established and proviso to Section 11(a) can be invoked. Ld. Collector, therefore, confirmed the demand of Rs. 11,51,30,192.92 and also imposed a penalty of Rs. 10 lakhs. He also allowed the appellants to redeem the confiscated goods on payment of a fine of Rs. One lakh. 3. The facts of the case in brief are that the appellants are the manufac turer of Newsprint classifiable under Tariff Item 17(1) up to 27-2-1986 and thereafter Chapter Heading 48.01 of the Schedule to the Central Excise Tariff Act, 1985. The appellants were availing exemption under Notification No. 163/67 as amended. The Department alleged that the appellants were not eli gible to exemption in terms of Notification No. 163/67 on the ground that the Newsprint manufactured by them did not contain mechanical wood pulp amounting to not less than 50% of the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; that in this letter specification of the pulp to be used in the manufacture of Newsprint was furnished; that pursuant to this letter licence was granted; that the process of manufacture of Newsprint in their factory was submitted along with letter, dated 7-3-1981; that representative samples of Newsprint manufactured were drawn from time to time and sent for test; that the Govt. Laboratory on each occasion examined those samples and was satisfied that the conditions set out in Notification No. 163/67 were complied with; that the classification list submitted to the Department claim ing the benefit of Notification No. 163/67 on the Newsprint were duly ap proved from time to time; R.T.12 returns were submitted month after month which were finalised; that a SCN dated 23-2-1989 was issued to the appellant demanding differential duty on the Newsprint cleared from the factory on Nil rate of duty during the period Feb. 84 to March 87 on the ground that the ap pellant had filed incorrect classification list saying that the newsprint manu factured by it was containing mechanical wood pulp amounting to not less than 50% of the fibre content and thus wrongly availing exemption under No ti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imposed. 7. Referring to the adjudication order No. 7/94, dated 8-4-1994, ld. Counsel for the respondent submitted that the Collector referred to Circular No. 38/90-CX.4, dated 12-9-1990 issued by the Ministry of Finance and ac cepted the position that prior to 28-2-1986; wood pulp obtained by Chemi-mechanical pulping process would be regarded as mechanical wood pulp; that the benefit of exemption under Notification No. 163/67 was ex tended to the appellants for the period up to 28-2-1986. Ld. Counsel submitted that we are concerned with the period from 1-3-1986 to Aug 87 for which ld. Collector held that with the coming into force of the new tariff w.e.f. 1-3-1986, the position had changed inasmuch as Chapter 47 made separate mention of Mechanical Wood Pulp and Semi-chemical Wood Pulp and other fibrous cel lulose materials under sub-heading 47.01; that this being the position, the benefit of Notification could not be extended to newsprint manufactured by the appellant; that the exemption notification had to be construed as per its plain meaning and that exemption could not be extended by inference. Ld. Counsel for the respondent submitted that the Collector has also held tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Pulp, Dissolving Grades specially mentioned that such pulp is obtained by first reducing the wood to chips or particles which are then treated with chemicals. 9. On the question of limitation ld. Counsel for the respondent sub mits that a manufacturer is required to correctly declare all facts in the Classifi cation List if the declaration has a material bearing on the classification of excisable goods; that since the appellants were claiming the benefit of exemp tion, it was up to them to make a correct declaration as to how the exemption was available to the goods manufactured by them according to the declaration in the classification list. He submitted that the declaration in the classification list was not correctly made and therefore, the extended period of limitation has rightly been invoked. 10. We have heard the rival submissions. On a careful consideration of the submissions made, we find that there are two issues thrown up by the ap peal for determination. The first issue is whether the pulp manufactured by the appellants was wood pulp produced by mechanical process used for man ufacture of newsprint and was eligible for the benefit of Notification No. 163/67. The s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will be producing electricity to the tune of 10 to 15 MW through one turbo-generator set. However, the elec tricity so produced is meant for use in the mill only and not for sale. You are requested to kindly examine our request for licence and grant exemp tion etc. at an early date. The necessary licence fee of Rs. 20/- is paid through Challan No. 357 of 12-3-1981 of SBT Vaikom. Thanking you, Yours faithfully. Sd/- General Manager . Our attention was also drawn to letter dated 26-7-1984 issued by Inspector of Central Excise asking the appellants to intimate the process of manufacture of Newsprint. In reply to letter the appellants indicated as under : To M/s. Hindustan Paper Corpn. Ltd. P.O. Newsprint Nagar, Gentleman; Sub : Process of manufacture of Newsprint. I request the process of manufacture of Newsprint may be intimated to this office, stating clearly the important raw-materials used and the percent age of output compared to the basic Raw-materials. This may please be treated as most urgent. Yours faithfully, Sd/- Inspector of Central Excise Vaikom Sector One copy of the manufacturing process was given to the Ins ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
