Amaravathy Sri Venkatesa Paper Vs. Commr. of C. Ex. - Court Judgment

Excerpt:
1. the appellants are manufacturers of paper and paperboards. a demand of duty of rs. 9,49,645/- against them was confirmed by the original authority for the month of march 2000 and the same was sustained by the first appellate authority. hence this appeal.2. we have examined the records, heard both sides and considered their submissions. the above demand is based on computation of "aggregate value of first clearances", for the purpose of notification no.6/2000-c.e., dated 1-3-2000, which granted exemption from payment of duty up to 210 mts of paper and paperboard (condition no. 15 of the notification stipulated that the exemption shall apply only to the paper and paperboard cleared for home consumption from a factory during the period from 1st march 2000 to 31st march 2000 up to first clearance of an aggregate quantity not exceeding 210 mts). the news print manufactured and cleared by the appellants during the said period was exempt from payment of duty, while other papers manufactured by them were dutiable, subject to the condition that the first clearance of 210 mts were excludible from the aggregate value of clearances for the purpose of payment of duty. in the instant case, the appellants did not include the clearances of news print for computing the aggregate quantity of 210 mts, which was objected to by the department. both the lower authorities held that the clearances of news print were also includible in the first clearance of 210 mts.3. in the present appeal, learned counsel for the appellants submitted that the view taken by the lower authorities was contrary to the board's circular f. no. 341/15/2000-tru, dated 21-7-2000 which interpreted notification no. 6/2000-c.e., and clarified that the clearances of paper exempted from payment of duty were not includible in the computation of first clearance of 210 mts of paper for the purpose of assessment of duty.4. ld. sdr reiterated the findings recorded by the commissioner (appeals). we find that the board's circular cited by learned counsel was over- looked by both the lower authorities while interpreting the provisions of notification no. 6/2000-c.e., ibid. in terms of the circular, which is binding on the revenue, the appellants were entitled to exclude the clearances of news print from the computation of the first clearance of 210 mts of paper for the purpose of assessment of duty. we, therefore, set aside the impugned order and allow this appeal.

Judgment:
1. The appellants are manufacturers of paper and paperboards. A demand of duty of Rs. 9,49,645/- against them was confirmed by the original authority for the month of March 2000 and the same was sustained by the first appellate authority. Hence this appeal.

2. We have examined the records, heard both sides and considered their submissions. The above demand is based on computation of "aggregate value of first clearances", for the purpose of Notification No.6/2000-C.E., dated 1-3-2000, which granted exemption from payment of duty up to 210 MTs of paper and paperboard (condition No. 15 of the Notification stipulated that the exemption shall apply only to the paper and paperboard cleared for home consumption from a factory during the period from 1st March 2000 to 31st March 2000 up to first clearance of an aggregate quantity not exceeding 210 MTs). The news print manufactured and cleared by the appellants during the said period was exempt from payment of duty, while other papers manufactured by them were dutiable, subject to the condition that the first clearance of 210 MTs were excludible from the aggregate value of clearances for the purpose of payment of duty. In the instant case, the appellants did not include the clearances of news print for computing the aggregate quantity of 210 MTs, which was objected to by the department. Both the lower authorities held that the clearances of news print were also includible in the first clearance of 210 MTs.

3. In the present appeal, learned Counsel for the appellants submitted that the view taken by the lower authorities was contrary to the Board's Circular F. No. 341/15/2000-TRU, dated 21-7-2000 which interpreted Notification No. 6/2000-C.E., and clarified that the clearances of paper exempted from payment of duty were not includible in the computation of first clearance of 210 MTs of paper for the purpose of assessment of duty.

4. Ld. SDR reiterated the findings recorded by the Commissioner (Appeals). We find that the Board's circular cited by learned Counsel was over- looked by both the lower authorities while interpreting the provisions of Notification No. 6/2000-C.E., ibid. In terms of the circular, which is binding on the Revenue, the appellants were entitled to exclude the clearances of news print from the computation of the first clearance of 210 MTs of paper for the purpose of assessment of duty. We, therefore, set aside the impugned order and allow this appeal.