TMI Blog1987 (9) TMI 196X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 2,85,544.59 covered by one of the impugned orders before him holding it as time barred and against this order the Revenue have filed an appeal before us. In the other case before him, Collector (Appeals) upheld the demand confirmed by the lower authority. The facts giving rise to the demands in both the cases are the same. The two appeals are therefore dealt with together. 2. Brief facts of the case are that M/s. Dhampur Sugar Mills Limited, in their mill premises, have installed one straw board unit with an installed capacity of 5400 metric tonnes and a paper unit with an installed capacity of 1500 metric tonnes per year. The Paper Unit was set up later in point of time. M/s. Dhampur Sugar Mills Limited, (appellants in one of the tw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... type described in the Table below, from so much of the duty of excise leviable thereon as is specified in the corresponding entry in Column (3) of the said Table : Sl. No. Description of paper mill Extent of exemption 1. Paper mill whose annual installed capacity in respect of all varieties of paper paper boards does not exceed 2000 tonnes. Seventy five per cent of the duty leviable 2. Paper mill whose annual installed capacity in respect of all varieties of paper boards does not exceed 5000 tonnes. Sixty per cent of the duty leviable 3. Paper mill whose annual installed capacity in respect of all varieties of paper paper boards exceed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lants were manufacturing both straw board and paper and it cannot therefore be alleged that they had held back any information regarding the manufacture of paper and straw board by them. He stated that the classification lists filed by them covered both paper and board and the claim for lower assessment in terms of the notification was made in the said classification lists and they were under the bona fide belief that they were entitled to the benefit of concessional assessment on paper based on the installed capacity of the paper plant alone. He stated the competent Central Excise authorities could have asked for further information about installed capacity of straw board plant in case they felt that the installed capacity of straw board p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the spot study. The report has been given after issuing a questionnaire to the appellants. This report does not throw much light as to whether the two plants in any way were sharing any common machinery. The appellants maintained in their reply to the Assistant Collector that the two units are functioning independently while the Assistant Collector indicated that there was some connection between the two. One thing however is clear from this that the two units are located in the compound of M/s. Dhampur Sugar Mills Limited and are a part of a common complex and a private road in the same compound separates the compounds of the two plants. 5. Shri Gopal Prasad after receipt of the report maintained that the two plants were independent. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time of approval if authorities entertained any doubt as to whether installed capacity of both had been taken together or not or that it was required to be taken together they should have made necessary enquiries with them. The classification lists had been approved without raising any queries in this regard. It is incumbent on the authorities that once they are in possession of the basic information, to make necessary enquiries before approving the classification lists in case there was any doubt about the applicability of the slab of exemption available. At the time of issue of the licence the appellants would have normally furnished estimated quantity of the goods to be produced. In fact, from the papers filed, it is seen that this fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lour or meal. 2. A device or mechanism such as rotating millstones, the grinds grain. 3. A mechanical appliance or machine that reduces a solid or course substance into a pulp or minute grains by crushing, grinding or pressing a pepper mill. 4. A machine that releases the juice of fruits and vegetables by pressing or grinding a cider mill. 5. a. Any machine that produces something by repetition of a simple process such a machine for stamping coins. 6. Any of various machines for shaping, cutting, polishing or dressing metal surfaces. 6. a. A building or group of buildings equipped with machinery for processing materials such as wood, hay, textile fibres and iron ore into finished products such as paper, fodder, cloth and steel; a textile mi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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