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TMI Blog2015 (5) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... for manufacture of paper, manufacture pulp containing not less than 75% by weight of the pulp made from the materials other than bamboo, hard wood, soft wood, reeds (other than Sarkanda ) or rags. Some of such pulp is also purchased from outside. After manufacture of the pulp of the required specification in their factory or procuring such pulp from outside, they sent such pulp to M/s Anmol Paper, who converted the pulp into paper rolls on job work basis and the papers rolls were returned to the appellant's unit. M/s Anmol Papers, were operating under job work notification no. 214/86-CE and were sending back the paper rolls under job work challans without payment of duty against an undertaking given by the principal manufacturer Appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s dated 06.11.2006 and 20.03.2007 confirmed the total duty demand of Rs . 1,41,89,683/- for the period from September 2005 to January 2007 against the appellant along with interest thereon under section 11AB and beside this, imposed penalty of Rs . 40,00,000/- under rule 25 of the Central Excise Rules. Appeal No. E-954/2008 has been filed against this order. For April 2007, the Joint Commissioner vide order in original dated 16.12.2008, denied the above exemptions and confirmed the duty demand of Rs . 27,71,823/- against the appellant company along with interest under section 11AB and imposed penalty of equivalent amount under Rule 25 of the Central Excise Rules. On appeal being filed to Commissioner (Appeals) against this order of the Join ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same factory or not, that there nothing in the board's circular from which it can be inferred that the benefit of these exemptions would not be available if the conversion of pulp into paper is outsourced and is done in some other factory on job work basis, that the only ground on which the benefit of this exemption is sought to be denied is that the pulp has not been converted into paper in the same factory, that there is no basis for denying the exemption on this ground, that the exemption would be available to a manufacturer of paper/ paper board irrespective of whether the pulp of the required specification is also manufactured in the factory or the pulp is bought out and the exemption cannot be denied just because the conversion o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 01.03.2002 (Serial No. 86 and 86A ) and successor notification no. 4/06-CE (Serial No. 90-91) prescribe the concessional rate of duty for paper and paper board or articles made there from manufactured/ starting from the stage of pulp in factory, and the pulp is of a specified specification/ that is, containing not less than 75% by weight of the pulp made from the materials other than Bamboo, hard wood, soft wood/ reed (other than sarkanda ) or rags. This exemption is subject to certain conditions as mentioned in the notification, and one of the condition is that this exemption would be available to papers/ paper board cleared for home consumption from factory in any financial year up to first clearances of aggregate quantity not exceedi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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