9911796707
TMI Blog1998 (10) TMI 318X X X X Extracts X X X X X X X X Extracts X X X X ..... llants are engaged in the manufacture of various types of paper falling under Chapter 48 of the CETA, 1985. They were also availing Modvat credit facilities. In terms of Notification No. 61 /88 book printing paper falling under Chapter sub-heading 4802.99 is exempted from payment of Central Excise duty provided the paper contained mechanical wood pulp amounting to not less than 50% of the fibre content and if the paper is intended for use in the printing of text books or other books of general interest. Appellants filed classification list taking the benefit of Notification No. 61/88 which was approved. On 25-2-1991 Supdt. of Central Excise issued SCN to the appellants demanding duty on the wrapper paper used for packing reams/ree ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per. The Assistant Collector had held that the present appellants were not eligible to claim exemption on wrapper paper in terms of Notification No. 217/86 in packing of book printing paper as this was exempted under Notification No. 61/88. Confirming the order of the Assistant Collector the Collector (Appeals) had also held that on a plain reading of Notification No. 217/86 it would be clear that since the final product is exempted, the appellants were not eligible for availing the benefit of the said Notification. The Collector (Appeals) had, therefore, held that they will be required to pay duty at the initial stage within the factory before the wrapper paper is used for packing book printing paper. 5. We have perused the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tiled by the appellants it appears that the appellant's position is that in terms of Notification No. 217/88 goods manufactured in a factory and used within a factory of production in the manufacture of finished goods was eligible for exemption from duty since both the varieties of paper, namely, mill wrapper and book printing paper fell under the same Chapter. Further, they have also submitted that mill wrapper paper had no marketability and were exclusively used for packing of types of paper. Further, though mill wrapper is being used for packing, since there was no difference under the Tariff heading between paper used for wrapping purposes and paper contained in the packing, the mill paper was part and parcel of the content paper which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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