TMI Blog2000 (8) TMI 908X X X X Extracts X X X X X X X X Extracts X X X X ..... ise was levied on paper at ad valorem rate and subsequently duty at specific rate was also leviable in adition to ad valorem rate of duty under Section 3 of the Central Excises and Salt Act. In addition to excise duty, the Ministry of Industry, Government of India have levied a duty of excise as cess at the rate of 1/8% ad valorem on paper and paperboard, all sorts under Section 9 of Industries (Development Regulation) Act, 1951 read with the Notification No. 862 (E), dated 22-10-1980 as amended vide Notification No. S.O.87(E) dated 3-2-81. (ii) The price of paper is determined and fixed on nominal weight in the paper trade and invoices are raised accordingly. This method and practice is followed in commercial trade parlance for raisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 show cause cum demand notices are set out below :- (a) Realisation of higher value on paper through invoices in excess of that value shown in the gate passes in case of assessment. No excise duty and cess were paid on such excess value. (b) Non-inclusion of value for extra sheet of wrapper used in packing of 250 sheets of paper in the assessable value thus there was short payment of duty on such extra wrapper. (c) Payment of cess on paper on the assessable value determined under Section 4 of Central Excises and Salt Act. (d) Availment of trade discount on paper cleared for mill use which is not permissible. The Commissioner (Appeals), Central Excise vide his order No. 150/CAL-II/5, dated 7-9-95 has set aside the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pay the differential duty, and, thus, rule passed by the Assistant Collector being correct in law is upheld. Being aggrieved with the decision of the Commissioner (Appeals), Central Excise, Calcutta upholding the order of the Assistant Commissioner, Barrackpore Central Excise Division (Order No. 36 (A) of 1944) pertaining to eight show cause cum demand notices for Rs. 43,551.11 issued to Hindustan Paper Corporation Ltd. and also for charging differential duty on higher value, the appellant files this appeal before the Appellate Tribunal, C.E.G.A.T., Calcutta against order No. 150/CAL-II/95, dated 7-9-95. 3 The grounds in appeal are :- (i) The ld. Commissioner (Appeals), Central Excise while deciding the appeal petition did not apply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner (Appeals) has not accepted the method and practice followed by the manufacturers and dealers of paper in preparation of bills/invoices though commercially it has been accepted in the trade. (iii) Perusal of orders of Calcutta High Courts make it explicitly clear that India Paper Pulp Company Limited went into liquidation in the year 1981 and were sold to Government of West Bengal in public auction. The proceedings of sale of India Paper Pulp Company Ltd. to Government of West Bengal was ratified by Calcutta High Court vide order dated 11-5-1992. Therefore the assumption and contention of the ld. Commissioner (Appeals) in his order dated 7-9-1995 (Para 4.1) that there is no evidence on record to suggest that there is any change ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucer, or whosoever stored the coimpugned goods therefore cannot be burdened with a demand for a period earlier to their purchasing the concern as they are not persons chargeable to duty as per Rule 7 of Central Excise Rules for that period. We find that the rules do not provide for the present appellants to be responsible for payment of duty for goods manufactured and cleared by a manufacturer (i.e. Hindustan Paper Corporation) much before they took possession of the concern. Without hearing the actual manufacturer of the goods i.e. Hindustan Paper Corporation there cannot be a determination of demand under Section 11A(2). (iii) The Commissioner (Appeals) order therefore is required to be set aside and matter remanded back to the Assistan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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