TMI Blog2011 (7) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... exempted products, they were rightly held to be liable to pay amounts u/r 57AD CE Rules & Rule 6(3)(b) CC Rules. appellants have indicated clearance of waste pulp in the returns. Therefore, invoking the extended period of limitation for raising demands and imposition of penalties are not justified. decided against Assessee but demand only for normal period and no penalty. regarding demand of duty on 'waste paper sweepings. Held that:- goods have been sold as waste paper, obviously, at a lower price compared to that of good quality of paper. It has not been disputed that the buyers have purchased them as paper and for using the same as paper.That being the case, the demand of duty on waste paper under Chapter Heading 470290 cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 009 without payment of duty and without maintaining separate accounts for inputs. In these cases, first show cause notice dated 2.9.2005 was issued covering the period August 2000 to April, 2005 thus invoking extended period and thereafter periodical show cause notices have been issued and demands confirmed by the original authority and penalties imposed in some of the cases and the said orders stand upheld by the Commissioner (Appeals). The relevant facts, in these appeals are that the appellant manufactures paper and paper boards; that they have an integrated plant for manufacture of wood pulp and paper and that they have 6 paper making machines. Raw materials like wood chips and other fibre material are subjected to pulping by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alty in other cases. Commissioner (Appeals) confirmed the orders of the original authority. The paper waste obtained while sweeping the floor has been cleared at nominal price. The original authority treated the said paper as falling under Chapter Heading 470290 by holding the same as excisable goods which have arisen out of manufacturing process and demanded duty along with interest and imposed penalties which stands upheld by the Commissioner (Appeals). 4.1 Learned Advocate for the appellants submits that they are using quality pulp generated during the integrated process for further manufacture of paper. Waste collected at centricleaners of two of the paper making machines were sent through the effluent treatment plant a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vs. CCE [ 2000 (117) ELT 798 (Tri-Del)]. 4.3 Regarding invocation of extended period of limitation, in the case in appeal No. 2965/2006, she draws our attention to the finding of the original authority, that they have mis-declared the pulp as waste pulp to the department and submits that the said finding is erroneous. What was cleared by them was clearly a waste item and the fact of clearance of waste pulp has been declared by them to the Department as duly noted by the original authority. Therefore, the question of suppression of relevant facts or mis statement of any fact does not arise. Therefore, she submits that if the demand is up-held, the same should be restricted to normal period of limitation. 5.1 Learned Adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture of inferior paper and paper boards as recorded by the authorities below have not been disputed by the appellants. On the invocation of extended period of limitation, he reiterates the findings and reasoning of the authorities below. 6.2 Regarding the waste paper, he submits that the same have undergone all the manufacturing process as applicable to quality paper manufacture by them.The said paper has been treated as waste after having been manufactured and sold only as paper and therefore duty has been rightly demanded. On the invocation of extended period of limitation, he reiterates the findings and reasoning of the authorities below. 7.1 We have carefully considered the submissions from both sides and perused t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ants have undisputedly, indicated clearance of waste pulp in the returns, the allegation that they have declared the pulp as waste pulp is not substantiated. Undisputedly, what was sold by them was of quality not usable by them and therefore, their describing the same as waste pulp cannot be held to be mis-statement. Therefore, invoking the extended period of limitation for raising demands and imposition of penalties are not justified. 7.2 We find that demand on waste paper has been made on the ground that the said goods are excisable goods. Undisputedly, the appellants have in their integrated mill, starting with wood chips and other fibrous materials as raw materials and subjecting them to various processes, produced paper. Some ..... X X X X Extracts X X X X X X X X Extracts X X X X
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