1996 (7) TMI 237

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... as they are not covered by the Notification No. 62/82 as amended by Notification No. 48/83 and 79/86. The Notification is specific for manufacture of paper and paper board and core pipes are neither paper nor paper board. As such the duty is leviable and the order of Assistant Collector is not maintainable." 2. The facts of the case are that the appellants are engaged in the manufacture of paper and paper board. They also manufacture core pipes. For manufacture of core pipes, they use paper manufactured by them. Core pipes are used captively for winding of other varieties of paper. A controversy arose whether duty should be demanded on the paper used in the manufacture of core pipes as alleged by the department or duty cannot be de....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....mended. In support of his contention the ld. Consultant cited and relied upon the decision of the Apex Court in the case of Star Paper Mills Ltd. v. C.C.E. reported in 1989 (43) E.L.T. 178 (SC). He submitted that the Apex Court formulated the issue thus : "the third point only which therefore, arose for consideration in the case is whether paper core is used in the manufacture of paper as component part" and held that paper core is a component part in the manufacture of paper rolls. The ld. Consultant submitted that their case was fully covered by this decision of the Apex Court. 5. Shri J.M. Sharma, the learned DR submitted that we are concerned with the short issue whether duty should be demanded on the paper used in the manufactu....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e issue is not that of component or set-off of duty and therefore, the facts in the case are different and the decision of the Apex Court is clearly distinguishable. 7. Heard the submissions of both sides. We find that the short question for determination before us is whether duty is payable on the paper used in the manufacture of core pipes. We have heard the pleadings of the ld. Consultant for the appellants saying that core pipe is an intermediate product and that the process of manufacture in which core pipe is produced is a continuous process. We find that core pipe is a distinct product which is classifiable under Tariff Item 4818.19. Reading the Notification under which the concession has been claimed shows that only that pap....