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TMI Blog2005 (10) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... redit of the specified duties on plastic coated paper known as 'LDPE coated paper'. It, however, did not avail of any Modvat credit in respect of base paper or base paperboard. According to the Appellant, the cardboard container is manufactured out of base paper having three layers and the outer layer consists of LDPE coated paper which is said to have been manufactured from the base paper apart from other inputs. 3.The Appellant filed a Modvat Declaration on or about 2-11-1992 purported to be in terms of Rule 57G of the Central Excise Rules, 1944 declaring LDPE Coated Paper falling under sub-heading 4811.30 of the Schedule appended to the Tariff Act as input which was intended to be used in or in relation to the final excisable goods, namely, Composite Paper Containers (Containers) meriting classification under sub-heading 4819.12. The Appellant admittedly after filing the said Modvat Declaration availed of the Modvat credit of specified duties paid on the inputs amounting to Rs. 35,185.13. The tariff rate for the said containers of sub-heading 4819.12 of the Schedule was stipulated at 35% ad valorem of basic excise duty and the corresponding special excise duty was at the rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g containers. Exemption notification, the learned Additional Solicitor General would contend, must be construed strictly. 10.The aforementioned Notification No. 67/82-C.E., dated 28-2-1982 (as amended by Notification dated 28-2-1993) read thus : "Effective rate of duty for printed cartons, boxes, containers and cases. - In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts printed cartons, boxes, containers and cases (including flattened or folded cartons) whether in assembled or unassembled condition, falling within Chapter 48 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), from so much of the duty of excise leviable thereon as is in excess of twenty percent ad valorem subject to the condition that the appropriate duty of excise or additional duty leviable under section 3 of the Customs Tariff Act, 1975 (51 of 1975), as the case may be, has already been paid in respect of the base paper or base paperboard used in their manufacture : Provided that nothing contained in this notification shall apply to a manufacturer who avails of the special procedure prescribed under rule 56A or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , printed carton, boxes, containers and cases whether in assembled or unassembled condition falling under Chapter 48 of the schedule appended to the Central Excise Tariff Act, would receive the benefit of exemption subject to the condition that the appropriate duty of excise or additional duty leviable under Section 3 of the Customs Tariff Act has already been paid in respect of the base paper used in their manufacturing. 18.Item No. 48.02 refers to uncoated paper and paperboard of a kind mentioned therein. Item No. 4802.20 is as under : Paper or-"4802.20 paperboard, in the manufacture of which, - (a) the principal process of lifting the pulp is done by hand; and (b) if power driven sheet forming equipment is used, the Cylinder Mould Vat does not exceed 40 inches." 19.'Composite paper' and paperboard (made by sticking flat layers of paper or paperboard together with an adhesive), not surface-coated or impregnated, whether or not internally reinforced, in rolls or sheets has been shown in Item No. 48.07. 20.The proviso appended to the notification contains an exception thereto stating that if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... monium Phosphate falling within Chapter 31 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India for use as manure from the whole of the duty of customs leviable thereon which is specified in the said First Schedule : Provided that in respect of any consignment of ammonium phosphate imported under cover of a claim for exemption from duty in pursuance of the provisions hereof, the importer shall execute a bond in such form as may be prescribed by the Assistant Collector of Customs, binding himself, in sum equal to the amount of duty ordinarily leviable on such articles, to pay on demand the duty leviable on such quantity thereof as is not proved to the satisfaction of the Assistant Collector of Customs to have been used as manure." 23.The issue raised was as to whether Mono-Ammonium Phosphate which was used as manure in the manufacture of complex fertilizers was entitled to the benefit of the said exemption notification. A further contention was raised that Mono-Ammonium Phosphate was not the only input used in the manufacture of complex fertilizers and it was also not used directly for use as manure in the manufacture of complex fertilizers. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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