9911796707
TMI Blog1996 (12) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... ). The contention of the petitioner is that the wrapping paper manufactured by it, is captively used for wrapping the paper of other varieties, which cannot be marketed without being wrapped; that the petitioner is not trading in the wrapping paper that in view of the Third Proviso to Rule 9 of the Central Excise Rules, 1944 (briefly, the Rules), the goods may be removed without payment of duty leviable thereon if they are consumed or utilised in the place where such goods are produced or manufactured either as raw material or a component part of the manufacture of any other commodity which is excisable goods specified by the Central Government by notification under sub-rule (1) of Rule 56A; that `paper' is specified by the Central Governme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng room to the finishing room and again at the time of clearance of the packings of the paper of other varieties from the factory gate; that the petitioner then made an application dated 25-10-1981 to avail a credit of duty in accordance with Rule 56A of the Rules; that prior to that the petitioner had made one more application dated 27-1-1978 to the same effect; that when nothing was heard from the respondents on the said applications, the petitioner made another application dated 3-9-1983, Annexure-5 to the writ petition; that all these applications to avail a credit under Rule 56A are still pending with the respondents and, therefore, one of the prayers of the petitioner is that respondent No. 1 be directed to decide the aforesaid applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... component part of the finished goods falling under the same tariff item and specified in Rule 56(a) of the Rules, that wrapping of finished product by wrapping paper is a process incidental and ancillary to the completion of manufactured product under Section 2(f) of the Act and wrapping is used as a component part of finished excisable goods; that the printing and writing paper could not be sold without being packed and wrapped by wrapping paper; and that the wrapping paper being used captively was not liable to excise duty at the time of clearance for being used in the packing and on that excise duty could be levied and collected only when the packings with contents are removed from the factory gate. The Supreme Court accepted such conten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation No. 175/86, dated 1-3-1986 and Notification No. 217/86, dated 2-4-1986 as were enforced from time to time. In so far as this relief is concerned, it is suffice to say that the Court does not grant such declaration. If benefit under these notifications is illegally refused to the petitioner then the petitioner will be at liberty to challenge the same in accordance with law. 9.In the result, the petition is disposed of finally directing respondent No. 1 to decide the petitioner's application dated 3-9-1983, Annexure-5 to the writ petition, if not already disposed of, within a period of six weeks from the date a certified copy of this order along with copy of the said application is produced before him and to allow a credit of excise d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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