1981 (8) TMI 81 - HC - Central Excise

Summary

Issues:
Interpretation of excise duty on mill board manufactured from waste paper and straw.

Analysis:
The petitioner, a manufacturer of mill board from mixed waste paper and straw, was issued a notice for additional excise duty. The Assistant Collector held that the board did not conform to the specification of 'mill board' and should be assessed as 'board other sorts'. The appellate authority and the Central Government upheld this decision, stating that the board did not qualify as mill board and did not satisfy the proviso limiting the quantity of other materials used. The Central Government's revisional order emphasized that the proviso applied only to straw board, not mill board.

The notification defined 'mill board' as made from mixed waste paper without any other material and 'straw board' as predominantly from straw or bagasse. The authorities contended that the proviso limiting other materials applied only to straw board, not mill board. However, the High Court disagreed, stating that the proviso applied to both definitions. The court highlighted that the board's composition exceeding one-third weight of other material made the proviso relevant.

The Central Government's order did not address the issue of the quantity of other material used in manufacturing the board. The High Court determined that the proviso applied to both mill board and straw board definitions. The court directed the matter to be reconsidered by the Government in light of their interpretation. The petitioner's success in the petition led to the quashing of the Central Government's order for a fresh decision. The court also addressed the petitioner's deposits with the Assistant Collector, instructing the Central Government to handle them appropriately.