TaxTMI 
TaxTMI 
2015 (11) TMI 210
X X X X Extracts X X X X
X X X X Extracts X X X X
....es are manufacturers of paper and they were paying duty under Notification 4/2006 dated 1.3.2006 as amended. Appellant No. 1 was paying duty @ 8% vide serial No. 91 of the Schedule to the said Notification while appellant No. 2 was also paying duty at the said rate but as per serial No. 93. Since they were paying the excise duty on the final product, they were availing cenvat credit on the inputs. 2. Revenue's contention is that their goods are covered by serial No. 90 of the said Notification which prescribes nil rate of duty, subject to the conditions prescribed in serial No. 10 of annexure to the said Notification. Further, since the first clearances of 3500 MT of the goods are allowed to be cleared at nil-rate of duty, the appellan....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r articles made therefrom manufactured, starting from the stage of pulp, in a factory, and such pulp contains not less than 75% by weight of pulp made from materials other than bamboo, hard woods, soft woods, reeds (other than sarkanda) or rags 12% 11 92. 4801 00 Newsprint, in reels Nil - 93. 4802, 4804, 4805, 4807, 4808 or 4810 All goods 12% Annexure 10. (1) This exemption shall apply only to the paper and paperboard or articles made therefrom cleared for home consumption from a factory, in any financial year, up to first clearances of an aggregate quantity not exceeding 3500 Metric Tonnes. (2) The exemption shall not be applicable to a manufacturer of the said goods who avails of the exemption under t....
X X X X Extracts X X X X
X X X X Extracts X X X X
..../20039CE dated 1/3/2003 will not be eligible for the present exemption. Serial No. 90 prescribes nil rate of duty. Further, the nil rate of duty is subject to two conditions prescribed under serial No. 10. The first condition is that nil rate is applicable in any financial year upto first clearances of an aggregate quantity not exceeding 3500MT. The second condition is that the manufacturer shall not be availing the benefit of Notification 8/2003-CE dated 1.3.2003. The Revenue's contention is that for the initial clearance of 3500 MT, the rate of duty is nil and there are no conditions for the said clearance and hence the provisions of Section 5A(1A) will come into play. The relevant portion of Section 5A is reproduced below: 5A. Powe....