1996 (7) TMI 237 - AT - Central Excise

Summary

Issues:
Whether duty is payable on paper used in the manufacture of core pipes under Notification No. 62/82 as amended.

Analysis:
The appeal challenged an Order-in-appeal that held the appellants liable to pay duty on paper and paper board used in manufacturing core pipes, as they were not covered by specific notifications. The dispute centered on whether duty should be levied on paper used in core pipe production or not.

The appellants, engaged in paper and paper board manufacturing, argued that since core pipes were a component in the continuous process of paper production, they should be exempt under Notification No. 62/82 as amended. They cited the Apex Court's decision in Star Paper Mills Ltd. v. C.C.E., emphasizing core pipes as a component part in paper manufacturing.

The department contended that core pipes were not paper or paper board but classified under a different chapter. They argued that the exemption under Notification No. 62/82 as amended did not cover core pipes, which were distinct products under Tariff Item 4818.19.

The Tribunal found that core pipes were classifiable under a different tariff item and not as paper or paper board. They interpreted the exemption notification strictly, concluding that paper used in core pipe manufacturing was not covered. They distinguished the appellants' reliance on the Apex Court's decision, stating it was based on different facts and notification, hence not applicable.

Ultimately, the Tribunal upheld the duty imposition on paper used in core pipe production, rejecting the appeal. They emphasized that core pipes were not considered paper, thus not qualifying for the duty exemption meant for paper and paper board used in further paper manufacturing.

In conclusion, the Tribunal's decision clarified that duty was payable on paper used in the manufacture of core pipes, as core pipes were distinct products and did not fall under the exemption for paper and paper board under Notification No. 62/82 as amended.