TaxTMI 
TaxTMI 
1985 (1) TMI 331
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....e an appeal filed before it. 2. The facts of the case, briefly stated, are that M/s. Leatherite Industries Pvt. Ltd., Faridabad (hereinafter referred to as the respondents) are engaged in the manufacture of P.V.C. Coated paper falling under Item No. 17 of the First Schedule to the Central Excises and Salt Act, 1944 (CET, in short). During the period from 1-9-1976 to 28-2-1977, the respondents effected clearance of P.V.C. Coated paper valued at Rs. 2,77,329.74 paise availing themselves of complete exemption from duty in terms of Central Excise Notification No. 68/76, dated 16-3-1976. The Central Excise authorities considered that the subject paper, not being a converted paper subjected to printing of colour on one side, was not entitled t....
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....ntral Government called for and examined the records relating to the proceedings leading to the impugned order of the Appellate Collector with a view to satisfying themselves that the impugned order was proper, legal and correct. The Central Government came to the tentative view that P.V.C. Coated paper was distinct from printing paper and the P.V.C. Coating could not be held as equivalent to printing of colour. Whereas P.V.C. Coating on paper imparted different functional characteristics to the finished product, the colouring of paper might not be adding much to the intrinsic value of the paper used as raw material. The product manufactured by the respondents did not answer to the description given against Serial No. 3(ii) of Notification ....
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.... strength to the subject product. He submitted that a printing and writing paper printed with colour on one side would satisfy the requirements of the notification. Shri Sunder Rajan relied upon the "Dictionary of Printing, Paper making and Book Binding" by W.C. Kenneison and A.J.B. Spilman which defines coated paper as any paper surfaced with a/composition. The term is applied in contradistinction to paper in which the clay is mingled with the pulp during manufacture. The present paper, according, to Shri Sunder Rajan, was merely a coated paper. Next, he relied upon the book Industrial and Specialties Papers" by Small Business Publications which, inter alia, states that apart from the main coating ingredient, namely, adhesive and pigmen....
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....C. printing imparting functional characteristics to the paper different from those imparted by the simple process of printing with colour. Nor did it envisage the reduction or enhancement of the intrinsic value of the paper by the printing method adopted. This was not a relevant consideration. 8. Replying to the above contentions, Shri Sunder Rajan stated that while he agreed that P.V.C. printing was possible, the printing of the kind contemplated in the notification should be on plastic coated paper, i.e. printing of the plastic coated paper by a simple process of colour printing, not printing by P.V.C. compound containing colouring material. 9. We have carefully considered the contentions of both sides and have gone through the mate....