2018 (12) TMI 10

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....ad. 2. Brief facts of the case are that appellants were engaged in the manufacture of 'Paper Board' falling under Chapter 48 of Schedule to Central Excise Tariff Act, 1985. They were paying concessional rate of duty as per Entry No.163 of Notification 12/2012-CE dated 17.03.2012. During the audit of records of the appellants for the period from 2011-12 to 2013-14 it appeared to the representatives of the Revenue that appellants were not eligible for benefit of concessional rate of duty of 6% on the paper board manufactured by them. The said exemption of effective rate of duty of 6% ad-valorem was available for paper board manufacture by starting from the stage of pulp and if such pulp contains not less than 75% by weight of pulp made fro....

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....orm them for the period from February, 2010 to December, 2014. Further on similar lines for subsequent period another show cause notice in the form of statement was issued for the period from January, 2015 to March, 2015 demanding differential Central Excise duty of Rs. 5,35,351/-. On contest both the show cause notices were adjudicated through impugned Order-In-Original wherein the learned Original Authority confirmed the demand of Rs. 1,49,56,309/- and imposed equal penalty. Aggrieved by the said order appellant is before this Tribunal. 3. Heard the learned counsel for appellant. He has submitted that in the past appellant had submitted classification list to the jurisdiction Assistant Commissioner availing similar benefit under Notifi....

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....at in normal parlance small pieces of textile are referred to as rags and therefore appellant was not eligible for said benefit. 5. Having considered submissions from both the sides and on perusal of record particularly the contends of the show cause notice it is very clearly emerging from para 8 of show cause notice dated 23.02.2015 that Revenue had an impression that unless waste paper is used for making pulp, the appellant is not eligible for concessional rate of duty provided under Notification No.12/2012. We find from the definition of rags as submitted by the learned counsel for the appellant and as contained in Textile (Consumer Protection) Regulation 1988, that rag emerge out of fabric and they do not emerge out of old cotton clo....