Central Excise - Interpretation of the words "starting from the stage of pulp" in Notification Nos. 22/94-C.E., 23/94-C.E. and 24/94-C.E. - Regarding - Central Excise - 40/40/94-TRU

Central Excise - Interpretation of the words "starting from the stage of pulp" in Notification Nos. 22/94-C.E., 23/94-C.E. and 24/94-C.E. - Regarding Circular No. 40/40/94-TRU Dated 6-6-1994 [From F. No. 18/2/94-TRU] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise and Customs, New Delhi Subject : Central Excise - Interpretation of the words "starting from the stage of pulp" in Notification Nos. 22/94-C.E., 23/94-C.E. and 24/94-C.E. - Regarding. I am directed to invite reference to Notification Nos. 22/94-C.E., 23/94-C.E. and 24/94-C.E., all dated 1st March, 1994 prescribing concessional rates of duty for paper and paperboard or articles made therefrom if these have been manufactured, starting from the stage of pulp, in a factory, and such pulp contains not less than 50%/75% of pulp made from unconventional raw materials. 2. Doubts have been expressed regarding the interpretation of these notifications with respect to the use of the words "starting from the stage of pulp". One interpretation is that the concessional rates would not be available unless the pulp used to manufacture the paper, paperboard, etc., is also manufactured in the same factory. It is also viewed that the concessional rates under these notifications would not be available if the factory uses imported or bought out pulp. 3. The matter has been examined. In notification Nos. 22/94-C.E., 23/94-C.E. and 24 /94-C.E., the words "starting from the stage of pulp" only indicate that the processes involved in converting pulp to paper and paperboard or articles have to take place in the same factory from which these goods are cleared. The primary aspect is that the same factory must process the specified pulp to culminate in the manufacture of paper and paperboard or articles made therefrom. Manufacturers claiming these exemptions have to establish that the goods have been manufactured in the factory itself from pulp of the specified composition. These notifications are not intended to apply only to those units which start from the raw materials to make pulp containing the specified percentages of unconventional raw materials. However, independent converters of paper and paperboard, etc., who do not process pulp are not covered under the purview of these notifications at all. 4. Accordingly, it is clarified that under notification Nos. 22/94-C.E., 23/94-C.E. and 24/94-C.E., the concession would be available to paper, paperboard, etc., if manufactured from pulp of the required specification regardless of whether the pulp itself is manufactured in the same factory or not.