TMI Blog2018 (5) TMI 1399X X X X Extracts X X X X X X X X Extracts X X X X ..... inion have opined that the appellant’s plant appears to be suitable for pulping agricultural residues - unit of the appellants are eligible for the benefit of exemption. As the facts of this case are similar to the facts of M/s.Shreyans Industries Ltd., therefore, the respondent are entitled to avail concessional rate of duty under entry No.86A of the N/N. 6/2002-CE as amended by N/N. 48/2004-CE dated 10.9.2004. Appeal dismissed - decided against Revenue. - Appeal No.E/1850/2011-Ex - A/62264/2018-EX[DB] - Dated:- 21-3-2018 - Mr. Ashok Jindal, Member (Judicial) And Mr.AnilG.Shakkarwar, Member (Technical) Present for the Appellant:Ms.Seema Arora, AR Present for the Respondent: Shri Sanjay Malhotra, CS PER: ASHOK JIND ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espondent has submitted any certificate from any technical expert regarding plant installed in their factory nor the Commissioner has taken opinion of any technical expert before deciding the case. It is further submitted that the Commissioner did not verify the fact to ascertain as to whether the respondent had purchased wood chips as raw material which might have been used for making wood pulp. It was also alleged that the Commissioner did not physically verify to ascertain as to whether the respondent had the plant capable of making pulp from wood. Therefore, the impugned order is to be set aside. 3. On the other hand, Ld. Consultant appeared for the respondent reiterated the findings in the impugned order. 4. Heard the parties and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the raw material is veneer wood chips and wood pulp purchased from outside. In their factory, there are three paper machines. Machine No. 1 and II have a common digester of 40 m.t./per day capacity. It is a continuous digester. There is no digester with machine No. III. Thus in this factory, there is a common digester which processes mainly the agricultural residues like wheat straw, bagasse, sarkanda and waste paper. Mixing small quantity of veneer waste alongwith other agro residues would not make it a word pulp plant. On a reference from the appellant No. 1, to Central Pulp Paper Research Institute, Saharanpur, which is an institute under the Ministry of Commerce, Dr. R.M. Mathur, Scientist of the Institute vide his letter dt. 25-4- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this field. (2) As regards the unit of Appellant No. 2, their raw-material are cereal straw, sarkanda, jute caddy and waste paper (92% to 95%) and 5 to 8% wood showing veneer cuttings and wood pulp. There are two cutters in this unit - one for cutting sarkanda/straw and the other for cutting jute caddy. The sarkanda cutter is also used for cutting wood shovings. There are ten Spherical Digesters in this unit which use soda process for cooking. Eight digesters are for agricultural residue and wood chips and two digesters are for long fibre raw materials, which according to the appellant, is jute caddy not wood chips (statement dated 9-8-05 of Shri Pradeep Verma, General Manager (Protiuction) and reply dated 25-11-05 of the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... title the appellants to the benefit of the notification. This judgment is squarely applicable to the facts of this case. Since these plants are not designed for making wood or bamboo pulp but admittedly make wood pulp containing 75% by weight of agro residues waste based pulp, the same cannot be called Wood or bamboo pulp plants . (4) The judgment of the Hon ble Supreme Court in the case of Central Pulp Mills v. CCE, Surat (Supra) cited by the Ld. Departmental Representative is not applicable to the facts of this case as in that case, there was a complete wood or bamboo pulp making plant in their factory and in order to avail the benefit of exemption under Notification No. 138/86-C.E., the part of the factory making bamboo or wood pu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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