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TMI Blog2018 (5) TMI 1399X X X X Extracts X X X X X X X X Extracts X X X X ..... cessional rate of duty under entry No.86A of Notification No.6/2002-CE dt.1.3.2002 as amended by Notification No.48/2004- CE dt.10.9.2004 without being eligible for the same as they did not fulfil condition No.14A appended to the said entry effective till 28.2.2006 and thereafter entry No.91 of Notification NO.4/2006-CE dt.1.3.2006 as they did not fulfil condition No.11 appended to the said entry. On the basis of investigation, a show cause notice was issued to the respondent to demand duty by denying the benefit of notification of concessional rate of duty. The matter was adjudicated, the Commissioner allowed the benefit of exemption notification and dropped the charges against the respondent. Against the said order, the Revenue is in appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of wood chips from M/s.Pooja Experts, it was submitted that the same has been used for trial run of the boiler used for generation of electricity. Further, it was stated by Shri Sanjay Malhotra that the company has not purchased any wood chips except the above consignment for trial run. The statement recorded during the investigation has not been disputed by the Revenue. In that circumstance, it cannot be alleged that the Commissioner has not verified the facts of the case and the facts of the case are not in dispute. Therefore, the Commissioner has rightly relied upon the decision of this Tribunal in the case of M/s.Shreyans Industries Ltd. vs. CCE, Ludhiana-2010 (256) ELT 153 (Tri.-Del.) wherein this Tribunal has observed as under:- "5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oody fibrous agriculture residues only. Trial usage of eucalyptus shavings or Veneer cutting has been done by using equipments and processes which are not normal for pulping of woody fibrous raw materials. In a nutshell, this plant does not have any facility for hard wood pulping". Besides this, Dr. A.K. Ray, Professor & Head, Deptt. of Paper Technology, IIT, Roorkee vide his letter dt. 15-5-06 has also given the same opinion. According to both these opinions, the design of straw cutter in this unit is such that it can be used only for cutting of sarkanda, straw or similar type of materials and these cutters are not suitable for cutting/chipping of woody materials for making wood pulp, and that Pandia type continuous digester using soda p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amboo pulp plant has bamboo/timber storage yard, wood debarking machine, wood chipping machine, cyclone separation for removal of dust, wood chip screening machine for removing cut size chips etc. None of these two units have any such machinery. According to opinion of the above mentioned experts, the cutters in both the plants are not suitable for chipping wood. Just because wood pulp can be made from veneer chips in their plants, it does not mean that their plants are suitable and designed for making wood pulp. Tribunal in case of Ballarpur Industries Ltd. v. Collector of Central Excise, Delhi, reported in [1984 (17) E.L.T. 378 (Tri.)] has, while interpreting the scope of the expression "plant attached thereto for making bamboo pulp" in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oo or wood pulp, as all these operations were of temporary nature and could be reversed at the mill and convenience of the appellants. In this case, the appellants do not have the wood chipping, chip washing plants and all they have for pulp making are digesters, which as per the opinion of the technical experts in this field, are suitable for processing agro waste like wheat/rice straw, sarkanda, jute caddy etc. 6. In view of the above, we are of the view that the units of both the appellants are eligible for the benefit of exemption under Notification No. 6/2002-C.E., as amended by Notification No. 48/2004-C.E., dated 10-9-04 (S. No. 86A). The Commissioner's orders No. 6/LDH/06 dated 21-2-06 and 01/LDH/06 dated 8-2-06 denying the benefi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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