9911796707
TMI Blog1984 (3) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... aypur, Rayagada District Koraput in the State of Orissa where it is running a paper mill with a plant attached for making bamboo and wood pulp which is a conventional raw material for manufacturing paper. The petitioner no. 1 has also a paper mill at Chola Road, Bhopal, in the State of M.P. and is manufacturing straw board, paper board and kraft paper using not less than 50 per cent by weight of pulp made out of bagasse, jute stalks, carcal straw, elephant grass and waste paper which are unconventional raw material for manufacturing paper. In the Bhopal factory the total clearance of kraft paper during the financial year ending 31st March, 1983 was 6329.21 metric tonnes. Paper and paper board are liable to excise duty under the First Schedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ub-item (1) of Item No. 17 of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944), and containing not less than fifty per cent by weight of pulp made from bagasse, jute stalks, cereal straw, elephant grass (Imperata Cylindrica), mesta (Kenef) or waste paper, cleared for home consumption on or after the 1st day of April, in any financial year, from so much of the duty of excise leviable thereon under the said Act at the rate specified in the said First Schedule as is in excess of the amount calculated at the rates specified in the corresponding entry in column (2) of the said Table, subject to the conditions specified therein. Description Rates Paper, other than paper boards cigarette ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Orissa is also added to the clearance of the paper manufacture in their mill at Bhopal, then the petitioners would not be entitled to concessional rate under any of these items. The petitioners would be entitled to claim concessional rate at item no. 2 only if the clearance of all varieties of paper manufactured at Bhopal only is considered. It is also not disputed that if the manufacturer has more than one factory the total quantity of clearance of all varieties of paper from all its factories have to be taken together in order to consider whether any of its factory is entitled to any concessional rate. The petitioners' case is that the total quantity of clearance of all varieties of paper manufactured out of unconventional raw material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing that since the petitioner No. 1 did not include the clearance effected from its factory at Rayagda to the clearance of the paper manufactured at Bhopal, the eligibility for granting exemption under the revised notification does not arise and the petitioner No. 1 is liable to pay excise duty at the rate already prescribed under the schedule and not as per the revised notification. Aggrieved by this order, the present petition has been filed saying that the alternative remedy of appeal is not adequate since there is question of interpretation of the notification in question. 4. According to the return filed by the respondents, the petitioner no. 1 is entitled to concessional rate for the paper manufactured at its Bhopal mill if the tota ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioners. The petitioners do not dispute that total quantity of clearance of all varieties of paper manufactured from one or more factories of a manufacturer has to be taken into consideration while deciding whether concessional rate is available or not, but their case is that since the factory at Rayagada has a plant attached for manufacturing bamboo and wood pulp the quantity of paper manufactured in that factory has to be excluded altogether because that factory is not entitled to claim any concession under the proviso to the notification. We are unable to accept this contention. The concessional rates are claimable provided the factory (i) doss not have a plant attached thereto for making bamboo or wood pulp; and (ii) manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Act is to tax surplus wealth. It is clear that all land is not excluded from the definition of assets. It is only "agricultural land" which is exempted. Therefore, it is imperative to give reasonable limits to the scope of the "agricultural land", or, in other words, this exemption has to be necessarily given a more restricted meaning than the very wide ambit given to it in AIR 1969 Andhra Pradcsh 345 (FB)." If the notification is read as suggested by the petitioners then we have to Add in column 2 after the words "from one or more factories" the words "manufacturing paper from unconventional raw material". In that column no such words can be added and the words clearances of all varieties of paper from one or more factories means from ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
