TMI Blog2018 (5) TMI 1400X X X X Extracts X X X X X X X X Extracts X X X X ..... also get the benefit of the exemption on the ground that they were the “first clearances” or the included varieties are denied the exemption (as in the present case) merely on the ground that they were not cleared first. Such a reading of a notification which makes it unworkable is to be avoided. In the impugned order it has been observed that the contention of the Revenue is that the assessee had intentionally cleared the exempted paper on payment of duty to encash the duty paid from Cenvat Credit from the buyer and writing paper and printing paper were the same verified on which concessional rate of duty upto the first clearance of 3500 MT. However, the said observation of the Commissioner (Appeals) is without basis and is contrary to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dropped the proceedings against the assessee relying on the decision of this Tribunal in the case of Ballarpur Industries Ltd. vs. CCE-2003 (151) ELT 555 (Tri.). Against the said order, the Revenue has filed appeal before the Commissioner (Appeals) who held that the assessee is not entitled to avail the benefit of Notification No.04/2006-CE dated 1.3.2006. Against the said order, the assessee is in appeal before us. The Revenue has also filed appeal against the impugned order on the ground that the Commissioner (Appeals) has not imposed penalty under section 11AC on the assessee. 3. Heard the parties and perused the records. 4. On careful consideration of the submissions made by both sides, we find that short issue is before us as to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich makes it unworkable is to be avoided. 8 . With regard to exemption in respect of broke paper used in the manufacture of wood pulp, there is no dispute between the parties that the broke paper arising during manufacture of paper is actually recycled in the same factory and wood pulp is produced from the same. The exemption under Notification No. 10/96 exempts goods produced in a factory and consumed in the manufacture of goods specified in the notification. Wood pulp is one of the items so specified. Therefore, the notification specifically covers the use of broke paper in a paper factory in the production of wood pulp. The clarification issued by the Ministry of Finance puts this position beyond doubt. We find that appellants had c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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