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TMI Blog2005 (2) TMI 604X X X X Extracts X X X X X X X X Extracts X X X X ..... emption Notification No. 48/89-C.E., dated 1-3-1989 as the Kraft paper manufactured by the appellants is not containing 75% by weight of pulp made from bagasse. 2. Brief facts of the case are that appellants are engaged in the manufacture of Kraft paper and they were claiming the classification under Heading 4804.11 of the Central Excise Tariff and benefit of the Notification No. 48/89-C.E., dated 1-3-1989 on the ground that they were manufacturing Kraft paper containing not less than 75% by weight of pulp made from Bagasse. A show cause notice was issued on 6-7-1992 for the period July 1987 to March 1992 demanding duty and imposition of penalty on the ground that Kraft paper manufactured by the appellants is not covered under 4804.11 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eir Kraft papers content more than 75% by weight of pulp made from bagasse. Appellant also relied upon the I.S.I. specification regarding kraft paper which shows that kraft paper contains 10% moisture. 5. The appellants also submitted that the demand is time barred as no suppression can be alleged against the appellants. The Revenue issued the Trade notice No. 71/84, dated 9-5-1984 to clarifies the position regarding the benefit of Notification No. 142/81-C.E., which also provided exemption to the Kraft paper containing not less than 75% by weight of pulp made from bagasse. This Trade notice lays down a procedure to be followed by the manufacturer and as per this procedure, manufacturer has to be maintained a mixing register and this Trad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se in the pulp used in the Kraft paper is between 60% to 61% only. Therefore, the appellants were wrongly classifying their Kraft paper under Heading 4804.11 of the Central Excise Tariff. 7. In this case the dispute is whether the Kraft paper manufactured by the appellant is classifiable under Heading 4804.11 of the Central Excise Tariff. This heading covers Kraft papers containing not less then 75% by weight of pulp made from Bagasse. The Adjudicating authority comes to conclusion after taking into consideration the moisture contents in bagasse, the maximum recovery of pulp from bagasse is 29%. The Adjudicating authority held as under : From the above so many statements of the manufacturers and the technical literature on the subject ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the part from Sugar factories was well as local dealers was 50% and thus the maximum recovery of pulp from bagasse if the weight inclusive of moisture is taken is 28.8% or say at the most 29%. 8. We find that this percentage is fixed only on the statements of other manufacturers of Kraft papers and taking into consideration some technical literature. The contention of the appellants is that while arriving at the percentage of bagasse in the pulp, the Adjudicating authority taken into consideration the weight of the Kraft paper, which contains moisture as well as other additives. In the case of M/s. Sikka Paper Mills Limited (supra), the Tribunal upheld the order of the Commissioner of Central Excise whereby the benefit of moisture c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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