TMI Blog2015 (9) TMI 1488X X X X Extracts X X X X X X X X Extracts X X X X ..... t from the waste pulp, used by the appellant is imported wood pulp. Nobody knows about the constitution of the imported wood pulp or materials used therein. In the absence of any evidence on record that the imported wood pulp used by the assessee was made out of the materials to which exception stands made in proviso (ii), we find no merits in the Revenue’s stand. Even at the cost of repetition we would like to observe that the Revenue has neither alleged nor proved that the balance pulp used by the assessee was made out of bamboo, hard woods, soft woods, reeds or rags so as to deny the benefit of the exemption notification to the appellant - Held in favour of the assessee on the point of interpretation of the said proviso, we do not fee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s being manufactured by the assessee out of the pulp manufactured out of waste papers, in their own factory premises as also out of the imported wood pulp. Revenue entertaining a view that one of the conditions of the notification does not stand satisfied by them and as such initiated proceedings against them for finalization of the benefit of the notification which stands culminated into the impugned orders, one in favour of the assessee and the other in favour of the Revenue. 3. The dispute relates to proviso (ii) appearing in Notification No. 138/1986-C.E., dated 1-3-1986. We for better appreciation, reproduce the said proviso : (i) .. (ii) such paper and paperboards have been manufactured out of pulp containing not le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said proviso, the same requires the pulp not to be made out of bamboo, hard wood, soft wood, reeds or rags. This means that the Revenue, for denial of the benefit of the said notification, has to first allege and prove that more than 50% of pulp used by an assessee has been made out of these listed materials. Admittedly this is not the Revenue s case at all. Nowhere it stands alleged in the show cause notice that the appellant had used the pulp, more than 50% by weight, made out of the said bamboo, hard woods, soft woods, reeds or rags. The second type of pulp, apart from the waste pulp, used by the appellant is imported wood pulp. Nobody knows about the constitution of the imported wood pulp or materials used therein. 6. The conten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gin. Even if we accept the Revenue s stand that the said words are referring to another type of pulp made from the woods, whether Indian or Foreign, we find that the imported wood pulp used by the assessee has nowhere been analyzed in respect of its raw materials used therein. Learned senior advocate appearing for the appellant explains that mere use of the expression wood pulp will not itself lead to the inevitable conclusion that said imported pulp has been made from the types of wood mentioned in the notification. He explains that in foreign countries certain waste woods in the shape of saw dust, wood curls or wood waste or even the sugar cane waste (baggase) could have been used for preparation of that wood pulp. We agree with the abo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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