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TMI Blog2005 (4) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... n these appeals is whether the value of the clearance of Kraft Papers cleared on payment of duty should be included for the first clearance of 3500 MTs in respect of the clearances effected from the assessee in terms of Central Excise Notification No. 3/2001 dated 1-3-2001 (Sl. No. 87) which provides exemption for paper manufactured with non-conventional raw materials (NCRM) for first clearances of 3500 MTs in a financial year. The fact that the Kraft Paper manufactured by the assessee has been made out of non-conventional raw material is not disputed even though the Revenue had doubts about it in the year 2000-2001 and proceeded against the appellants for availing exemption for Kraft Papers manufactured out of waste papers which is a non-c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and Smt. Shobha L. Chary, learned JCDR appeared for the Revenue. 3. The learned Advocate brought to our notice the clarification of the Board in respect of Notification No. 6/2000-C.E., dated 1-3-2000 (Sl. No. 77) which is pari materia with Central Excise Notification No. 3/2001. The clarification given by the Board under its letter dated 5-4-2000 reads as follows :- "Sub : Notification No. 6/2000 dated 1st March 2000. Kindly refer to your letter No. IAPMA/2000 dated the 22nd March 2000 on the above subject. 2. The exemption to paper and paperboard or articles made therefrom using pulp obtained from non-conventional raw materials as contained in S. No. 77 of Notn. 106/2000-C.E., dated 1-3-2000 has to be read along with Condition N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation No. 3/01 (Sl. No. 87). 5. We have gone through the rival contentions. In view of the Ministry's clarification and also on a correct interpretation of the relevant notification, it is very clear that the value of the Kraft Paper made out of non-conventional raw material has to be included in the aggregate value of the first clearances of 3500 MTs. But it is only the Department which took a different stand and compelled the assessee to pay duty on Kraft Paper. In these circumstances, we do not find any contumacious conduct on the part of the assessee. There are no grounds to hold that there is suppression of facts. Hence no penalty can be imposed under Section 11AC on the assessee. However, in view of the correct legal position, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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