TaxTMI 
TaxTMI 
2009 (11) TMI 292
X X X X Extracts X X X X
X X X X Extracts X X X X
....of packing grade paper classified under sub heading No. 4805.90 in terms of Notification No. 138/86/CE., dated 1-3-1986. To avail the benefit of such notification and the concessional rate of duty, a manufacturer is required to manufacture the packing grade paper out of pulp containing not less than 50% pulp, by weight, made from non-conventional materials, i.e., pulp should not have been made out of bamboo, hard-wood, soft wood, reeds or rags. 3. On 26-12-1986 the preventive staff of the Central Excise Collectorate, Chandigarh visited the factory premises of the assessee and examined its re cords. On examination of the record, according to the revenue, it was found that 51% to 52% of the pulp mixture by weight used by the assessee was f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ping in view the statements and the record, the Assessing Officer came to the conclusion that this paper had never been received and false entries had been made in the books. 6. Thereafter, an argument was raised that even if this quantity of pa per is not taken into consideration then also the assessee is entitled to the benefit of the said notification since the amount of unconventional material used still exceeds 50%. After analyzing the entire record and holding a proper enquiry, the assessing officer came to the conclusion that the charges alleged against the assessee had been established. The assessing officer determined the amount of duty at Rs.68,21,417.95/-. He also imposed a penalty of Rs.2 crores on the assessee arid confiscat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rned Senior Advocate appearing for the assessee and Ms. Shilpa Sood, learned Central Government Counsel for the revenue. 9. At the outset we may state that the present writ petition(s) were not the appropriate remedy available to the assessee. The assessee could have either sought reference of the substantial question of law if any or filed an appeal in terms of Section 35 of the Excise Act as they stood at the present time. However, keeping in view the fact that this writ petition has been pending for the last 9 years, we propose to dispose of the same -on merits itself. 10. The scope of interference in a writ petition is very limited. In a writ petition, this Court cannot go on merits of the case and can only decide whether the deci....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... therefore, is not entitled to the benefit of the Notification No. 138/86-C.E., dated 1-3-1986. In our considered view merely because the classification list under Rule 173B had not been changed would not entitle the assessee to claim benefit of the exemption notification especially when it is proved on record that the assessee has forged the record and has made false entries to show that it had manufactured the uncoated packaging paper from out of waste paper, white cuttings etc. which in fact had never been received in its factory. 12. The revenue authorities have given a finding of fact that though the assessee claimed that it had received a total quantity of 1522301 Kgs of such waste paper from various parties between the period 1-3-....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er materials, the following position would emerge: (1) pulp made out of imported pulp, pulp obtained 1,43,61,331 kgs from Jute cuttings, gunny cuttings, hemp cuttings and hemp (1,57,98,34-14,36,903). (2) Pulp made out of the waste Paper (broke) origin - 73,43,904 kgs nated in the factory and recycled: (3) Total (1)+(2) 2,17.05.238 kgs It is thus evident that a quantity of 2,17,05,238 kgs was used for the manufacture of paper out of which quantity of 1,49,72,169 kgs of paper could easily be manufactured. This finding is a pure finding of fact and cannot be interfered in writ proceedings. 15. Sh. Sood contends that the amount of broke taken into account while calculating the input should have also been counted towards the to....