TaxTMI 
TaxTMI 
2024 (5) TMI 126
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....t Control Order, 2004. The appellants generally supplied news print to certificate holders who are publishers of newspapers registered by the Registrar of Newspaper for India under the provisions of Press and Registration of Books Act, 1867. Thus, when the paper is intended for printing of newspapers and supplied against purchase order placed for the appellant by the newspaper which is registered by Registrar of Newspaper for India (RNI) under the provisions of Press and Registration of Books Act, 1867. The same is classified by the appellant under heading 4801 as newsprint chargeable to nil rate of duty as the tariff rate itself is nil in terms of Notification No. 23/1998-CE dated 01.08.1998 as amended issued in terms of chapter note 4 to ....
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....the period from November, 2008 to June, 2009. Thereafter, the show cause notice dated 08.12.2019 came to be issued to deny the benefit of Notification No. 23/1998-CE dated 01.08.1998 to the appellant on the grounds that the condition of the said notification are not fulfilled in as much as the goods cleared by the appellant can be treated as newsprint only when the same were supplied against the purchased order placed on the appellant by newspaper which is registered by the Registrar of Newspaper for India. According to the show cause notice since the goods were cleared to the depot and at the time of removal from the factory to the depot, the same was not supplied against the purchase order placed upon the appellant by the newspaper regist....
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.... printing of newspapers. As per the condition of the notification, the subject goods should be manufactured by the manufacturer of newsprint under Schedule of Newsprint Control Order, 2004 which is not in dispute. The only reason to deny the benefit is that clause of the second condition of the notification i.e. supply against the purchase order which is very technical in nature. He submits that against the purchase order the goods should be supplied as such goods i.e. paper manufactured by the appellant to the newspaper. On this fact there is no dispute that from the depot/godown goods were ultimately cleared to the newspaper only. Therefore, all the conditions stand fulfilled to be eligible for nil rate of duty under Chapter 4801 read wit....
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....cleared the good to the unregistered depots which cannot be defined as "place of removal" and therefore transfer of finished goods to such unregistered premises cannot be called as "Depot" transfer. (c) That the finished goods have not been cleared against purchase order as required under the Notification. 4.1 We find that the goods manufactured by the appellants are undisputedly newsprint as per Notification No. 23/1998-CE dated 01.08.1998. The relevant portion of this notification is reproduced below:- " In exercise of the powers conferred by Note 3 to Chapter 48 of the Schedule to the Central Excise Act, 1985 (5 of 1986), the Central Government, hereby defines 'newsprint' for the purpose of the said Chapter 48, as paper of a kind:- ....
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.... time of removal of goods from the factory it was not removed against the purchase order but since the same goods were sold from godown against the purchase order as prescribed under clause (b) of the Notification, the condition at clause (b) stands satisfied. 4.4 We find that the first requirement is that the subject goods must be intended for newspapers. It is not the case of the department in the show cause notice that the goods are not intended for printing of newspapers. The second condition may be read as under:- "Manufactured by a manufacturer of newsprint specified under Schedule of the Newsprint Control Order, 2004 and supplied against a purchase order placed upon such manufacturer by a newspaper which is registered by the Regis....
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....to the interpretation given by the appellants. The expression "supplied against a purchase order placed upon such manufacturer by a newspaper" does not necessarily mean that the manufacturer should supply newsprint directly to a newspaper. What was intended by the amendment was that the supply of newsprint to a newspaper must be against a purchase order placed by the latter. It could either be direct or through a depot. We have found nothing in the text of the amended proviso which can be construed as a bar against indirect supply of newsprint by the manufacturer of a newspaper for the purpose of exemption under the Notification. 3. In the above view of the matter, we set aside the impugned order and allow this appeal." 4.6 We also obse....