2002 (3) TMI 381

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.... Shri L. Narasimha Murthy, JDR, for the Respondent. [Order per : S.S. Sekhon, Member (T)]. - The appellants are manufacturers of PVC leather cloth at their two factories, one situated at 1 DA Patanchere and the other at Nandigaun village. Unit I manufacture goods exclusively for home consumption while Unit II for export and supply to institutional buyers. 2. Unit II had imported 'R....

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....Q. (iii)    Confiscation of seized 'Used Release Paper' under 173Q. (iv)    Penalty under Rules 9(2), 52A and 226 be imposed on the manufacturer and under Rule 201A on Sh. H. Krishna Kumar, Director. 3. The Commissioner, did not find the plea of partial use in Unit II and thereafter removal to Unit I and use there as 'Release Paper' to be acceptable. He ....

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.... lakh and a penalty was imposed of Rs. 20,000/- under Rule 173Q. A penalty of Rs. 20,000 was imposed on the Director under Rule 209A. The present appeals are against this order. 4. We have heard both sides and considered the matter and find : (a)     'Release paper' has an important role to play in the manufacture of PVC leather cloth. The copy of show cause notice o....

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....reafter can conclude that the entity under removal and consideration in this case is 'waste paper' or other than 'Release Paper'. Once the Release Paper does not change its identity and usage from 'Release Paper', is not understood by the Department to be 'waste' and considered and used by the importers as 'Release paper'. Therefore it is understood only as 'Release paper'. Manufacture of a new co....