Central excise duty was not recoverable on solvent lost by evaporation during cellophane coating under the relevant notification.

Central excise duty was held not recoverable on the solvent content of Nitro Cellulose Lacquer lost by evaporation during the coating of cellophane. The Government noted that duty had been paid under protest on the evaporated quantity, but the matter had already been decided in the petitioners' favour in an earlier revision order. Notification No. 130/73 was treated as substantially reproducing the earlier Board instructions on the subject, so the same favourable view was applied to these revision applications.

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Issues: Whether central excise duty was recoverable on the solvent content of Nitro Cellulose Lacquer lost by evaporation during the coating of cellophane, in light of the Board's instructions and Notification No. 130/73.

Analysis: The revision applications concerned the same issue and were disposed of by a common order. The Government noted that the petitioners had paid duty under protest on the quantity of solvent lost due to evaporation during the coating process. It was found that the matter had already been decided in the petitioner's favour in an earlier revision order and that Notification No. 130/73 substantially reproduced the earlier Board instructions on the subject.

Conclusion: Duty was not recoverable on the solvent lost by evaporation, and the earlier favourable view was applied to these revision applications.

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