9911796707
TMI Blog1987 (7) TMI 255X X X X Extracts X X X X X X X X Extracts X X X X ..... e base paper from the market which is then printed and waxed with the aid of power. This waxed paper is mostly used for wrapping and packing of soap, bread etc. The department has demanded duty from the appellants for the period from 31-9-1977 to 30-9-1982 relying on 5 years limitation period from the date of issue of Show Cause Notice. 2. Heard Shri S.C. Srivastava, Consultant on behalf of the appellants and Shri A.K. Rajhans, JDR for the department. 3. The appellants have argued that they are really manufacturers of printed labels which are product of the printing industry. It is submitted that while it is true that they are undertaking waxing, but this is done in respect of branded labels which are meant for the individual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nds that both the demand for duty and the penalty may be set aside. 6. On behalf of the department, Shri Rajhans reiterated the view taken in the orders of the lower authority which he submits are detailed and self-explanatory. He has nothing further to add. 7. The facts of the case and the submission made have been fully considered. So far as the product itself is concerned, we have no doubt in our mind that it is nothing but waxed paper. Appellants have sought to make a distinction in respect of their product and the product in cases like Modern Paper Converters. We do not think that any such distinction is reasonable or feasible. It would not be reasonable to hold that the paper would be waxed paper if the waxing is done be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Item 17(2) as waxed paper. 11. Coming now to the arguments relating to both time-bar and the penalty, we observe that the department itself was apparently in doubt for a long time over the classification and liability of goods in question. It is, therefore, that the Show Cause Notice issued on 16-9-1981 was withdrawn after more than 15 months on 21-12-1982. It cannot be said, therefore, that the department was not aware of the production of the goods and the existence of the unit for a fairly long time before the Show Cause Notice was issued. No case, therefore, is made in regard to the imposition of penalty, which is set aside. The demand for duty should also be limited to a period of 6 months. 12. Appeal partly allowed in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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