1993 (9) TMI 202

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....on merits and based upon written submissions. Accordingly, on perusal of the records, we have proceeded to hear the departmental representative for passing this order. 3. The appellants are engaged in the manufacture of paper and paper boards. They manufacture inter alia M.G. kraft paper and kraft liner etc. The issue relates to benefit of exemption notification in terms of Notification No. 46/83 dated 1-3-1983. Arguing for the Revenue Ms. Praveen Mahajan, learned SDR, submitted that appellants have claimed benefit of exemption in terms of Notification No. 46/83 in respect of paper of the substance having 220 gms. It was declared in the classification list the substance of paper manufactured by them exceeds 25 gms and contained not less ....

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....ause notice issued by the Assistant Collector except stating that M.G. kraft paper of 220 gms cannot be classified as paper and therefore, exemption under Notification No. 46/83 would not be applicable and they were not entitled to claim the concessional rate of duty. The Assistant Collector confirmed the demand on the sole ground that as per I.S.I. specification (i.e. 4661 - 1968) the board is defined as paper of the substance not below 180 gm/m. It was contended by the appellants before the authorities below that the notification prescribing the concessional rate of duty does not specify the substance of paper which was eligible for such concessional rate of duty. They strongly relied upon subsequent adjudication order dated 3-5-1991, pas....

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....ending upon the rigidity. The question of rigidity has not been tested and the same was not brought on records and there was no mention in this regard either in the show cause notice or in the order passed by the Collector for changing approved classification. Hence, in this case whether an item is a paper or a paper board is an important issue to get the benefit of concession in terms of Notification No. 46/83. We find that as early as in the year 1955 there was a clarification of the Central Board of Excise & Customs, on this issue as contained in letter No. 36/121 /54/Cus./ dated 14-4-1955, which is published at pages 434-435 of Central Excise Tariff of India 84/85 (11th Edition) by R.K. Jain. It is stated therein that the grammage per s....