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M/s Chadda Paper Mills Ltd. Versus Commr. of C. Ex. Meerut-II

2016 (9) TMI 178 - CESTAT ALLAHABAD

Captive consumption - core pipes manufactured and captively used - Kraft Paper was cleared or sold from the factory and was also used for manufacture of core pipe which was used for packing of Kraft paper - appellant submitted that, there is no application of Notification No. 67/95-CE and they have also not claimed any benefit under the said notification. - Held that:- the Ld. Commissioner (Appeals) have erred in imposing the application of notification No. 67/95-CE wherein it has no application .....

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as first Kraft paper comes into existence and thereafter, from Kraft paper, core pipe is manufactured for packing purposes. Further, the appellant have included the weight of core pipe in the weight of paper cleared. Therefore, the impugned order is set aside. - Decided in favour of appellant - E/2643/07 - Final Order No. 70529/2016 - Dated:- 5-7-2016 - Mr. Anil Choudhary, Member (Judicial) and Mr. Anil G. Shakkarwar, Member (Technical) None, for the Appellant(s) Shri Kamal Puggal, Asstt Commr .....

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tion from payment of duty under Notification No. 06/2002-CE dated 01.03.2002 on their first clearance up to 3500 M.T. of paper and paperboard or articles made therefrom. The condition in the notification was that the goods starting from stage of pulp, should contain not less than 75% by weight of pulp made from materials other than bamboo, hard woods, soft woods, reeds or rags. 2.2 That as per condition No. 14 of the said notification, the exemption shall apply only to the paper and paperboard o .....

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factured and consumed 36.55 MT core pipe as input for captive consumption without payment of duty. The goods cleared, i.e., core pipe, was valued at ₹ 5,26,750 involving central excise duty amounting to ₹ 84,280/-, the said SCN was issued as it appeared to Revenue that on the core pipes manufactured and captively used, the duty was payable as benefit of notification No. 67/95-CE was not available when final goods were cleared without payment of duty. As the appellant had cleared Kraf .....

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red along with Kraft paper, the appellant have included the weight of core pipe with the Kraft paper cleared under the overall permissible limit of 3500 MT per financial year. 2.6 Vide O/O dated vide 23.02.06 the Asstt. Commr. dropped the proceedings observing that core pipe do not come in existence first, and thus, cannot be captively consumed in the manufacture of Kraft paper. Further, Kraft paper and core pipe both fall under chapter heading 48 to the schedule of CETA. Kraft paper cannot be c .....

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the appellant for the purpose of winding of Kraft paper. The appellant have not claimed benefit of exemption under the Notification No.67/95-CE nor they have concurrently established that core pipe is not intermediate goods unlike the departments averment. Thus, holding core pipe to be intermediate product held that the appellants are liable to tax in terms of notification No. 67/95-CE. It was also held that core pipe being a complete final product will be subject to duty even it not sold and u .....

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