1985 (2) TMI 169

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....sposal as if it were an appeal filed before it. 2.  The appellants are alleged to have manufactured and cleared waxed paper falling under Central Excise Tariff Item No. 17 valued at Rs. 1,96,429.73 paise during the period from 13-12-1978 to 17-2-1979 without payment of duty which was over and above the exemption limit of Rs. 5 lakhs admissible to them under Central Excise Notification No. 71/78, dated 1-3-1978. The allegation was based on the fact that from the bills and invoices issued by the appellants, it was noticed by the Central Excise Authorities that during the period from 1-4-1978 to 17-2-1979, they had sold waxed paper of the value of Rs. 6,96,429.73 paise. Thus after allowing for the exemption of goods upto Rs. 5 lakhs, t....

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....llector's order. It is this order of the Board that is under challenge before us. 3.  During the hearing before us, Shri A.K.S. Bedi, Learned Counsel for the appellants took up only one contention. He said that waxed paper printed with specific matter for use by specific manufacturers, was nothing but an article of paper. In this connection, he relied upon trade notice No. 183/81, dated, 16-12-1981 issued by the Chandigarh Central Excise Collectorate itself. The notice said that printed paper where design printing had been done which had a general effect would fall under Item No. 17(2) of the Central Excise Tariff Schedule. If, however, printing of design had relevance to specific consumers of the products contained in packets/ cart....

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....di. 6.  The manufacturing process, as set out by the appellants in their reply to the Collector's show cause notice, is that the appellants purchase duty-paid poster paper and craft paper in reels [these fall under Item No. 17(2) and are duty paid]. The paper is printed with material like description, brand name, price etc. of the product to be wrapped and other particulars, in accordance with the specimen art work of the customers. After printing, the paper is subjected to the process of roll-waxing. The product is commercially known as waxed wrapper and is mentioned as such in the contracts for supply and sale documents. In the case of customers like Modern Bakeries India Ltd., who have automatic slicing and wrapper machines in th....