9911796707
TMI Blog2008 (8) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... The respondents are engaged in the manufacture of excisable goods falling under Chapters 48 and 47 of the Schedule to the Central Excise Tariff Act, 1985 in their industrial unit set up in Kutch District of Gujarat after 31-7-2001 and were availing the benefit of (Kutch) Area based exemption Notification No. 39/2001-C.E. dated 31-7-2001. In terms of the said Notification, the new unit set up in the Kutch District area of Gujarat on or after 31-7-01 and commencing the commercial production before 31-12-05 are entitled to the benefit of the said Notification. The manufacturer entitled to availing the benefit of the said Notification is first required to utilize the entire Cenvat credit available to him on the last date of the month under cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rted much before 31-12-2005. The corrugated sheets are manufactured by pasting together a few layers of craft papers and after passing through corrugation machine. The corrugated sheet is then sliced and slotted into desired size to obtain separators or cartons and therefore, corrugated separators and corrugated cartons are the final products; that they had completed the civil work, installation of machinery and commenced commercial production before 31-12-2005; that they have commenced the production of corrugated separators before 31-12-2005 since they had orders for the said product; that thereafter, they got the orders for corrugated cartons and they manufactured and supplied the same to their buyers; that their monthly returns show tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cut off date. As admittedly, the corrugated boxes are manufactured out of the corrugated sheets, the production of which commenced before 31-12-2005, no infirmity could be found in the view adopted by the Commissioner (Appeals). In any way, we find that Central Board of Excise & Customs vide their letter F. No. 119/21 /2006-CX.3 dated 10-7-2008 clarifying the position. For better appreciation, we reproduce the relevant part of the said letter: "Point No 1. Whether the benefit of exemption would be available to goods/products that unit starts manufacturing after the cut off date for the commencement of commercial production i.e. 31-12-2005. Comments: There would be two situations. First is that where a unit introduces a new product by in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of such sheets into boxes after the said date will not have effect of making the assessee ineligible to the benefit of the Notification. 5. It is well settled that Revenue cannot argue against the clarifications sued by the Board. We make it clear that even in the absence of the above clarification, the order passed by the Commissioner (Appeals) cannot be faulted upon inasmuch as, admittedly, plain corrugated sheets were manufactured before the cut off date and the entire plant and machinery was installed before the said ate. Subsequent manufacture of boxes out of corrugated sheets will not amount to production of an altogether new and different product so as to deny the given benefit. In view of the above, we reject the appeals filed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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