9911796707
TMI Blog2000 (3) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... cleared are classified under Chapter Heading 48.17 of the Central Excise Tariff Act, 1985. That produce is exempt from payment of duty under the Act itself. In the process of manufacture, two pieces of paper together with bitumen and yarn are laminated and pressed together. The reinforced paper thus derived was consumed practically in its entirety in the manufacture of envelopes. Show cause notice dated 2-9-1998 was issued proposing to demand duty on the intermediate product, namely, the reinforced paper on the ground that since the final product, namely, envelopes were exempt from payment of duty, the intermediate product has to discharge duty. Value of reinforced paper was arrived at by deducting from the sale price of the envelopes the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount." "Explanation VI.- Where any specified goods (hereinafter referred to as inputs) are used for manufacture of specified goods within the factory of production of inputs, the clearances of such inputs for such use shall not be taken into account for the purposes of calculating the aggregate value of clearances under this notification." 3. The fact that the appellant is a small scale industrial unit is not in controversy. So, clearances up to Rs. 30 lakes are free from duty under the Central Excise Act, 1944, which is so provided as per Notification No. 1/93, dated 28-2-1993. In arriving at this aggregate value of Rs. 30 lakhs, how the value of produce and the intermediate product is to be assessed is the issue in this case. Accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order admits that the reinforced paper is used captively by the appellant in the manufacture of the final product, namely, the envelopes. He further proceeded to state that the value should not be included in the value of the clearances. But the authority takes the view that it is not to be completely exempted in assessing the aggregate value as per the notification. According to the adjudicating authority, goods which are in the nature of inputs are also not to be taken into account for the purpose of calculating the aggregate value of clearances. What he observed is :- "As far as party's submission that where the specified goods manufactured are used captively for further manufacture of other specified goods within the factory of produ ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
