9911796707
TMI Blog1984 (7) TMI 364X X X X Extracts X X X X X X X X Extracts X X X X ..... kinds of paper, falling under Item No. 17 of the First Schedule to the Central Excises and Salt Act, 1944 (CET). They were availing themselves of the concessions contained in two Central Excise notifications--one bearing No. 128/77 dated 18-6-1977 which reduced the duty payable on paper produced by certain specified types of paper mills classified according to their installed capacity and the other bearing No. 201/79 dated 4-6-1979 which conferred a general exemption on all excisable goods in which inputs which had suffered duty under Item No. 68 C.E.T. were used to the extent of the duty borne by the inputs. In the present case, wood pulp was the 'Input'. The Supdt. of Central Excise, Roha issued a show cause-cum-demand notice dated the 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers were passed by the Asstt. Collector in respect of the second demand for ₹ 44,351.85. 3. Aggrieved with the Asstt. Collector's orders, the appellants filed before the Collector a revision application under Section 35A of the Central Excises and Salt Act urging that the Assistant Collector's order was a non-speaking order and that the appellants were entitled to avail themselves of the facility of proforma credit under Notification No. 201/79 and also enjoy the benefit of the concessional rate of duty under Notification No. 128/77. On adjudication, the Collector of Central Excise, Bombay-II held that - (i) to calculate the concessional rate under Notification No. 128/77, one has to determine the "duty leviable"; (ii) the "du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... antum of inputs actually utilised in the manufacture of the quantity of finished goods sought to be cleared on payment of duty was no longer there. Notification No. 201/79 (under which relief in the present case was being claimed) does not require such correlation--it was almost identical with the Rule 56A procedure. The credits in the RG. 23 Part-II register under this procedure can be utilised in the same manner as the credits in the Personal Ledger Account (PLA). The method permits adjustment of the amount of duty paid on the inputs towards the payment of duty on the finished goods. 5. On behalf of the respondent, the SDR supported the impugned order for the reasons stated therein. 6. We have carefully considered the submissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e annual installed capacity in respect of all varieties of paper and paper boards exceeds 5000 tonnes but does not exceed 10,000 tonnes. Fifty per cent of the duty leviable Provided that the paper mill (i) does not have a plant attached thereto for making bamboo or wood pulp, and (ii) manufactures paper out of pulp bought by it or made by it from any raw material other than bamboo or wood." (The proviso is not relevant here because there is no dispute about it). "Notification No. 201/79 dated 4-6-1979 In exercise of the powers conferred by sub-rule (l) of rule 8 of the Central Excise Rules, 1944, and in suppression of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No 178/77-Central E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y excisable goods for the manufacture of which the inputs were declared by the manufacturer to be brought into the factory. 7. Notification No. 128/77 exempts specified varieties of paper subject to certain conditions. The exemption is from so much of the excise duty leviable thereon as is specified in the relevant entry in the table appended to the notification. The extent of exemption is from 75%/60%/50% of the duty leviable, depending upon the annual installed capacity of the paper mill. In our view, this is the notification that has to be first applied in the present case. Suppose, the duty leviable on 1 MT of paper, calculated on the assessable value at the applicable rate of duty is ₹ 1,000. (The applicable rate of duty wo ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
