2017 (10) TMI 275 - AT - Central Excise

Classification of goods - news print - whether the news print supplied by the respondent falls under the definition of news print as provided under N/N. 23/98-CE dated 01/08/1998? - Held that - On perusal of the order dated 20/09/1995 issued by Govt. of India Ministry of Industry Department of Industrial Policy and Promotion the respondent s mill has been notified in pursuance of Item 3 of Schedue-1 read with sub-clause (e) of Clause 2 of the Newsprint Control Order 1962 as a mill producing Newsprint. Therefore the aforesaid criteria of mill being a manufacture of newsprint is not under dispute - As per the registration certificate of the buyers produced by the respondent it is observed that the buyer is registered by the Registrar of newspaper for India as a newspaper. As per this certificate the criteria of buyer to be registered as newspaper under the provisions of Press and Registration of Books Act 1867 also stand fulfilled. It is not necessary that the buyer should be compulsorily print the newspaper and the news print supplied by the respondent should be used in printing of such newspapers. The criteria is limited to the buyer should be registered as newspaper which is not under dispute. Therefore the news print supplied by the to the various buyers are clearly covered under the definition of news print as provided under N/N. 23/98-CE dated 01/08/1998 - appeal dismissed - decided against Revenue.

Summary

Issues:
1. Whether the newsprint supplied by the respondent falls under the definition of newsprint as provided under Notification No.23/98-CE dated 01/08/1998.

Analysis:
1. The case involved the respondent engaged in the manufacture and clearance of paper under Chapter heading No.48 of the CETA, 1985, specifically newsprint. The Ministry of Industry had declared the respondent's unit as a mill producing newsprint. However, a show-cause notice was issued alleging that the supplied newsprint did not meet the criteria as per Notification No.23/98-CE dated 01/08/1998.

2. The Revenue contended that the buyers were not engaged in printing newspapers, thus the supplied paper did not qualify as newsprint. They relied on various judgments to support their argument. On the contrary, the respondent argued that the supplied paper met the criteria of newsprint as defined in the notification, emphasizing that it was not mandatory for the newsprint to be used only for printing newspapers.

3. The Tribunal analyzed the definition of newsprint under Notification No.23/98-CE dated 01/08/1998, which required the paper to be intended for printing newspapers and manufactured by a specified newsprint manufacturer. The Tribunal found that the paper supplied by the respondent met these criteria and was used for printing newspapers, as per the registration certificates of the buyers.

4. The Tribunal emphasized that the criteria for newsprint under the Central Excise Act should prevail over any other interpretation, and since the supplied paper met the defined criteria, it qualified as newsprint. The Tribunal upheld the impugned order, dismissing the Revenue's appeal based on the end use of newsprint, which was not a condition under the notification defining newsprint.

This detailed analysis of the judgment highlights the key arguments presented by both sides, the interpretation of the relevant legal provisions, and the Tribunal's decision based on the criteria specified in the notification defining newsprint.