2023 (3) TMI 1365

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.... same in the manufacture of final products as inputs and availed cenvat credit of the duty paid on such inputs. The principal manufacturer had paid duty on craft paper at concessional rate of duty of 4% available under S.No.91 of Notification No.4/2006-CE dated 01.03.2006 under Section 5A of Central Excise Act, 1944. Proceedings were initiated against the principal manufacturer for not availing full exemption upto first clearance of 3500 MTs of paper or paperboard or articles thereof in a financial year under Sl.No.90 of Notification No.4/2006-CE dated 1.3.2006 even though they satisfied all the conditions stipulated under S.No.10 of annexure to the said notification. It appeared to the department that duty paid by the principal manufacture....

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....eny credit alleging that principal manufacturer ought to have availed full exemption and should not have discharged 4% duty on the finished products. The issue is no longer res integra and decided by the decisions of the Tribunal in the following cases : a) Final Order No.41301-41209/2018 dated 11.04.2018 of CESTAT, Chennai in the case of Kovai Maruthi Paper Boards & Others Vs CCE Salem. b) Final Order No.41906-41909/2018 dated 30.05.2018 of CESTAT Chennai in the case of Sripathi Paper Board P. Ltd, Sivakasi. c) Final Order No.42293-42294/2018 dated 06.08.2018 of CESTAT Chennai in the case of Akshera Paper Vs CCE Salem It is prayed that the appeal may be allowed. 3. Ld. A.R Ms. G. Anandalakshmi supported the findings in the impugned....

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..... 11. The first condition is that the exemption is available for the clearance of first 3500 MTs and the second condition is that the exemption is not applicable to a manufacturer who avails exemption under Notification No. 8/2003-CE dated 01.03.2003. The 'nil' rate of tax is therefore available subject to the satisfaction of both the above conditions. An identical issue came to be decided by this Bench in a batch matter in the case of M/s. Kovai Maruthi Paper and Boards &Ors. Vs. CCE, Salem (supra) involving the following issue extracted for the sake of convenience:- "9. The common issue that arises for consideration in all these appeals is whether the assessees are eligible to avail exemption as per the Notification No. 4/2006 under S....