9911796707
TMI Blog2013 (3) TMI 211X X X X Extracts X X X X X X X X Extracts X X X X ..... in certain proportion. This corrugation gum is mixed with the aid of power. The department found that certain quantity of the corrugation gum made in the factory is used within the factory in the manufacture of corrugated boxes, cartons and other articles cleared at nil rate of duty. Since the department was of the view that corrugation gum is an excisable item, attracting central excise duty, in respect of the quantity of the corrugation gum which is captively used in the manufacture of corrugated boxes, cartons and other articles cleared at nil rate of duty, exemption Notification No. 67/95-C.E., dated 16-3-1995 would not be applicable. On this basis a show cause notice dated 29-5-2001 was issued for demand of duty amounting to Rs. 8,43, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rden of proving its marketability is on the department, that statement of Shri V.S. Gupta of M/s. Sankla Chemicals and Shri Shushil Garodia of M/s. Progressive Packaging Industries stating that corrugation gum manufactured in their factories has shelf-life 3 to 4 days, cannot be applied to the corrugation gum being manufactured by the appellant as the ingredients of the corrugation gum in those factories would be different, that in terms of the Board's Circular No. 51/89, dated 5-9-1989 and 19/89, dated 28-3-1989, the corrugation gum cannot be treated as marketable and hence, cannot be treated as excisable, that bulk of the duty demand is time barred as there was no justification for invoking longer limitation period under proviso to Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used the records. The corrugation gum, in question, is made by mixing starch and borex with caustic soda in certain proportion and the same is used captively in the manufacture of corrugated packing material and trays. The duty demand is in respect of only that the quantity of corrugation gum, which has been used in the manufacture of exempted corrugated boxes/cartons and other articles and in respect of this quantity of corrugation gum the department's view is that the same is excisable and having been used in the manufacture of fully exempted final products, the same would not be eligible for exemption under Notification No. 67/95-C.E. In this regard, key question is as to whether the corrugation gum, in question, has shelf-life. The appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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