1997 (7) TMI 133 - SC - Central Excise

Supreme Court interprets duty exemption rules on plastic coated paper, grants appellant relief

The Supreme Court interpreted Notification No. 68/76 regarding duty exemption on plastic coated paper. The Court held that the requirement of printing ... Converted paper Issues:Interpretation of Notification No. 68/76 for exemption from duty on plastic coated paper.Analysis:The appellant, a manufacturer of plastic coated paper, sought exemption from duty under Notification No. 68/76. The notification provided for nil duty on specific types of paper, including plastic coated paper, subject to the condition that appropriate excise duty had been paid on the paper used in their manufacture. The Tribunal rejected the appellant's claim, stating that the paper had not been subjected to printing of colors on one side, thus denying the exemption. The Supreme Court analyzed the notification and held that the requirement of printing colors on one side was not necessary for plastic coated paper. The Court interpreted that the additional requirement applied to converted types of paper known by names other than imitation flint paper, leatherette paper, or plastic coated paper. As the appellant's product fell under the category of plastic coated paper, the benefit of exemption was deemed applicable.The Court emphasized that the specific names mentioned in the notification, such as plastic coated paper, did not necessitate the additional condition of color printing on one side. The requirement applied to paper types known by different names. Therefore, the appellant, manufacturing plastic coated paper, was entitled to the exemption from duty as per the notification. Consequently, the Court allowed the appeal, overturning the Tribunal's decision and granting the appellant the benefit of exemption from duty on their plastic coated paper.