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TMI Blog2023 (11) TMI 888X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the manufacture and clearance of paper and paper boards falling under Chapter Subheading 4804 of the Central Excise Tariff Act, 1985. The appellant had availed exemption under Notification No.4/2006-CE dated 1.3.2006 as amended by Notification No.4/2008-CE dated 1.3.2008 with effect from 1.4.2008 in respect of clearances made for home consumption during the period from 1.4.2008 to 7.8.2008. On the basis of scrutiny of ER1 returns, show-cause notice dated 26.03.2009 was issued alleging that the appellant had since availed the benefit of exemption Notification No.4/2006-CE dated 1.3.2006 during the said period, and also cleared the same goods on payment of duty, hence, not eligible to the benefit of said exemption Notification accordingl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mption. Further, he submits that the present exemption Notification is not an absolute exemption from payment of duty, but conditional exemption in as much as the said exemption is granted only for the first clearances of 3500 MTs against the total quantity manufactured and cleared in a financial year. It is his contention that the maximum quantity allowed in a financial year, for the first clearance is 3500 MTs. In the appellant's case, including the clearances on payment of duty, during the said period, they have not exceeded the maximum permissible limit of 3500 MTs. Further, he has submitted that as on the date of opting for the exemption with effect from 1.4.2008, the balance CENVAT credit available on books of accounts have been rever ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Notification has to be interpreted and followed scrupulously without any additions/inclusions, etc. 6. Heard both sides and perused the records. The short issue involved in this appeal is for determination is: whether the appellants are entitled to the benefit of the exemption Notification No.4/2006-CE dated 1.3.2006 for the clearances of 3499.971 MTs during the period from 01.04.2008 to 07.08.2008. It is not in dispute that for the period from 01.04.2008 to 07.08.2008 there has been a total clearance of 3499.971 MTs of manufactured paper and paper board cleared for home consumption. The Revenue denied the benefit of the said Notification on the ground that even though the appellant's total first clearances remained within the exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion number of which is referred to in the corresponding entry in column (5) of the Table aforesaid. Explanation.- For the purposes of this notification, the rates specified in column (4) of the said Table are ad valorem rates, unless otherwise specified. 1 2 3 4 5 Sl. No. Chapter or heading or sub-heading or tariff item of the First Schedule Description of excisable goods Rate Condition No. 90. 48 Paper and paperboard or articles made therefrom manufactured, starting from the stage of pulp, in a factory, and such pulp contains not less than 75% by weight of pulp made from materials other than bamboo, hard woods, soft woods, reeds (other than sarkanda) or rags. 8% 10 "Exemption to specified goods of Chapters 25 to 49 - Am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Revenue) No. 8/2003-Central Excise, dated the 1st March, 2003. Explanation.- For removal of doubts, it is hereby clarified that the first clearances of an aggregate quantity not exceeding 3500 metric tonnes shall not include clearances of any paper and paperboard or articles made therefrom which attract nil rate of duty or are exempt from the whole of excise duty under any other notification. 9. For the present purpose, clause (i) of the Condition No.10 is relevant. It is stipulated under the said clause (i) of Condition No.10 that the exemption shall apply only for clearances made for home consumption from a factory in any financial year up to first clearances of aggregate quantity not exceeding 3500 MTs. 10. I do not find any oth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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