9911796707
TMI Blog1995 (5) TMI 244X X X X Extracts X X X X X X X X Extracts X X X X ..... r per : K.S. Venkataramani, Member (T)]. - The brief facts relating to the appeal are as follows : 2. The appellants manufacture mill wrapper which is a variety of packing and wrapping paper which is captively consumed. The mill wrapper is used in packing and wrapping of the different varieties of paper manufactured by the appellants. Whenever the paper is sold in reams i.e. flat sheets of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of paper. The reel core is an intermediate product which comes into existence and is used in the manufacture of paper. 4. Proceedings were initiated against the appellants by issue of show cause notice dated 11-9-88 in which it was alleged that reel core is packing material on which paper is wound and mill wrapper is the raw material for the manufacture of reel core. Therefore, it was allowed r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellants. In so confirming the allegations in the show cause notice, the Collector relied on the Tribunal decision in the case of Collector of Central Excise v. Star Paper Mills - 1988 (38) E.L.T. 294 holding that reel core used for winding of paper is not a component part but is only packing material. The Collector also held that Rule 57D of Central Excise Rules, providing for Modvat credit even t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of Ponds India Ltd. v. C.C.E. - 1993 (63) E.L.T. 3. Further, the ld. Counsel referred to the Department s own understanding as reflected in a clarification given by the Ministry of Finance, Deptt. of Revenue Circular No. 33/33/94-CX 8, dated 4-5-94 in which it is stated that in situations where more than one intermediate product arises during the course of manufacture of a final produc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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