2014 (11) TMI 495

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....respondent has been doing the business of manufacturing materials relating to newsprint. The respondent is having a similar unit in Madathukualam and the same has been notified under Newsprint Control Order, 1962 and as per Schedule I of the Newsprint Control Order, 1962 the said unit is exempted from paying Central Excise Duty. But the present respondent is a distinct unit, even though identical work is being carried on has not been notified under the Newsprint Control Order, 1962. Under the said circumstances, two show cause notices, dated 5-7-2001 and 8-3-2002 have been issued with regard to different periods and thereby directed the respondent to pay the respective amount mentioned therein as Central Excise Duty. The said show cause not....

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.... same manufacturer in the absence of specific statutory provisions for the same and if so whether the authorities exercising jurisdiction under the Newsprint Control Order, 1962 are empowered to issue an order in general terms for a manufacturer instead of individual mills under the said Control Order?" 5. The learned counsel appearing for the appellant has contended that only with regard to first unit of the respondent which situates in Madathukulam, necessary exemption has been given from paying Central Excise Duty on the ground that the same has been properly notified under the Newsprint Control Order, 1962. But the present unit has not at all been notified. Under the said circumstances, the notification granted to the first unit....

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....ed under Schedule I of the Newsprint Control Order, 1962, and supplied against a purchase order placed upon such manufacturer by a newspaper which is registered by the Registrar of Newspapers far India under the provisions of the Press and Registration of Books Act, 1867 (25 of 1867)." 8. In Newsprint Control Order, 1962 clause (e), it is mentioned that "newsprint means paper of any of the descriptions specified in Schedule I used for printing and shall include odd sized newsprint [whether produced indigenously by any mill as specified in item 3 of Schedule I or imparted and certified to be as such by the Controller". 9. From the cumulative reading of the documents referred to supra, it is made clear that even though identic....

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....doubt or ambiguity, benefit of it must go to the State. But once the provision is found applicable to him, full effect must be given to it." 14. It is an admitted that if any Mill or Industry deals with manufacturing of newsprint material, the same can very well get exemption after getting proper notification under the Newsprint Control Order, 1962. The claim of the appellant/Department is based upon the fact that the second unit of the respondent has not been notified as per Newsprint Control Order, 1962. Only with regard to first unit proper notification has been obtained. 15. Both the Commissioner of Appeals as well as CESTAT have given identical findings to the effect that both the units have been engaging in manufacturi....