TMI Blog1983 (9) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... been accepted by the Directorate General of Supplies and Disposals, Government of India, for supplies under Rate Contract also and the chargeable weight of the paper is always inclusive of the weight of the wrapping paper. 2. Till May, 1972, the excise duty on wrapping paper and the paper packed in such wrapping paper was being collected at the rate applicable to the packed paper. The paper mills were also realising the duty on wrapper and packed paper on the this basis from their customers. However, with effect from 1-6-1972, the petitioner was called upon to pay duty on wrapping paper and wrapped paper separately at the rates of duty applicable to the them. 3. The petitioner was paying all along excise duty on container and contents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erial or component parts of finished products as the case may be on such goods received by him for purposes of manufacture of the finished products, on the terms and conditions as laid down therein. 6. By the notification dated 3-11-1967 as amended by notification No. 109/82-C.E., dated 28-2-1982 paper and paper-board is listed under Serial No. 8 in the list of commodities notified by the Central Government for the purpose of sub-rule (1) of Rule 56A. 7. On 21-9-1977 the petitioner applied to the Assistant Collector of Central Excise, Salem, claiming set off of duty paid or allowing of proforma credit for duty paid on the wrapper paper while making payment of duty at the time of final clearance of the packed reams/reels from their godow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ra Pradesh High Court, rendered in the Andhra Pradesh Paper Mills Ltd., Rajahmundry v. The Assistant Collector of Central Excise, W.P. 2055 of 1980 reported in short notes in 1982 (2) And. W.R. page 22 = 1983 E.L.T. 86 (A.P.). 9. In answer to the above contentions the learned counsel appearing for the respondents would contend that no doubt, wrapper paper had suffered excise duty at the time of manufacture. However, when it is taken to the finishing department, it is not subject to any further manufacturing process. Only in such a case, the set off claimed under Rule 56A can be given. This is not a case wherein the petitioner says that he cannot be subjected to duty once over again. If the petitioner seeks exemption under Rule 56A he must ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ule as the marginal note itself indicates lays down a special procedure for movement of duty paid materials or component parts for use in the manufacture of finished excisable goods. In the instant case, the petitioner manufactures both paper boards as well as wrapper paper. It is the common case between the parties that the wrapper paper had suffered excise duty at the time when it was manufactured. It is under those circumstances the question that would arise is, whether it can be subjected to excise duty once over again. Sub-rule (2) lays down the following qualifications :- The Collector may on an application made in this behalf, subject to, of course, a condition as may be prescribed de die in diem permit a manufacturer or any excisa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring process at that time. Nor does law insist upon such a qualification. If this background is kept in mind, there is no difficulty in upholding the argument of the learned counsel for the petitioner. I am totally unable to accept the reasoning given by the original authority or the Appellate Authority that there was user to undergo a process of manufacture at a further stage in which case alone the set off could be claimed. That interpretation does not bring out the full content, nor does it again reflect the true spirit of the rule. 11. In the Andhra Pradesh Paper Mills Ltd., Rajahmundry v. The Assistant Collector of Central Excise, 1982, (1) Andhra W.R. short notes page 22 = 1983 E.L.T. 86 (A.P.), it was stated thus - "When once th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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