TMI Blog2008 (8) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... A. Vasudev, Jt. CDR, for the Appellant. Shri Abhishek, Consultant, for the Respondent. [Order per: Archana Wadhwa, Member (J)]. - Being aggrieved with the order passed by the Commissioner (Appeals), Revenue has preferred the present appeal. We have heard both sides duly represented by Smt. A. Vasudev, Jt. C.D.R. appearing for the Revenue and Shri Abhishek, learned Consultant appearing for the respondents. 2. 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. d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to a new product. In any case, he has observed that corrugated box is not a new product but is only a down stream product of the corrugated sheets made from craft paper manufactured by the assessee from the same plant and machinery installed before the stipulated date and as such, it cannot be held that commercial production was commenced after 31-12-2005. Admittedly, the manufacture of corrugated sheets from craft papers started 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he above stand, the Commissioner (Appeals) held that corrugated boxes are down stream product of corrugated sheets manufactured by the same plant and machinery installed before the stipulated date and as such it cannot be construed as if the assessees commenced the commercial production only after 31-12-2005. It is not the Revenue's case that sheets were manufacture after the said date or any new machinery is installed after the 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/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of commercial production only shall be considered." As is seen from above clarification, where the factory is complete before the cut off date and commercial production has started, subsequent emergence of a new product using the same plant and machinery will not make the assessee disentitled to the Notification. As already observed, there is no dispute about the production of sheets before 31-12-2005 and subsequent conversion 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 orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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