TaxTMI 
TaxTMI 
1971 (1) TMI 54
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....ory at Dandeli. Paper manufactured in India is chargeable to excise duty under Section 3 read with Item No. 17 of the First Schedule of the Central Excises and Salt Act, 1944, hereinafter called the `Act'. The rate of duty on paper manufactured is not uniform. It depends on the classification made under Item No. 17 of the First Schedule. The petitioner manufactures, among other varieties, a variety of paper known as offset printing paper of different grammages. The petitioner claimed that such paper was assessable as printing and writing paper falling under Item No. 17(3) of the First Schedule of the Act. On 7-4-1962 the third respondent issued a notice to the petitioner to show cause as to why offset paper of grammages varying from 95 to 136 declared as offset printing paper should not be assessed to duty as cartridge paper under Item No. 17(1). The petitioner in its reply contended that the paper in question is used only for printing purposes on modern offset printing technique, that the manufacturing process for cartridge paper is different and that the use is also different. After making his own enquiries, the third respondent upheld the contention of the petitioner and dire....
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....o. 8/3/63-CX. VI) Central Board of Revenue New Delhi, the 21st August, 1963. From Shri Y.N. Chopra, Under Secretary, Central Board of Revenue. To All Collectors of Central Excise The Collector of Customs and Central Excise, Pondicherry The Deputy Collector of Central Excise, Jaipur/Amritsar/Tiruchirapally The Customs Adviser, Goa, Panjim. Subject : - Paper - Classification of Creamwove and Map Litho Paper. Sir, I am directed to refer to Board's letter No. 21/40/61-CX, dated the 1st November, 1961, on the above subject and to say that while Creamwove and Map Litho varieties of paper weighing below 85 grammes per square metre are classifiable as printing and writing paper covered by Item 17(3) of the Central Excise Tariff, the heavier varieties of these paper are not distinguishable from offset and cartridge paper of higher weights per square metre which have been considered as drawing paper according to the definition given by the Tariff Commission, as under : 'Offset and Cartridge Paper : This type of paper is suitable for the offset printing process. It is normally made from bamboo or grass stock and may contain some amount of rag an....
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....spect of the paper manufactured and cleared during the period from 21-8-1963 to 3-9-1963, a notice of demand for payment of differential duty under Rule 10 of the Central Excise Rules, 1944 for the amount of Rs. 51,878.28 was issued. 6. The petitioner being aggrieved by the action of the Deputy Superintendent of Central Excise demanding higher rate of duty made its representation to the second respondent. The second respondent issued a show cause notice dated 22-6-1966 copy of which is marked as Annexure 5. That notice reads as follows : "Office of the Assistant Collector of Central Excise, Bellary. C. No. V/17 (3)56/66D/-22-2-66. SHOW CAUSE NOTICE (BY Rg. AD). To M/s. West Coast Paper Mills Ltd., Dandeli. "Whereas M/s. West Coast Paper Mills Ltd., Dendeli have manufactured offset printing paper of grammage 85 per square metre and above and the same was assessed under Item 17(3) of the Central Excise Tariff and whereas the Trade was informed by Central Excise Trade Notice No. 131/63, dated 27-8-1963 issued by the Collector of Central Excise, Bangalore to the effect that offset printing paper weighing 85 grams per square metre and above will fall for assessment ....
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....ri V. Krishna Murthy the learned counsel for the petitioner urged the following six grounds in support of his petition : I. That the adjudication made by the third respondent by his order dated 30-5-1962 precludes the Central Excise Department from reopening the same question. II. The prior adjudication dated 30-5-1962 by the third respondent is a relevant material which ought to have been taken into consideration and the failure to take into consideration of the same has vitiated the adjudication by the second respondent. III. That the decision of the second respondent is based on grounds not relevant under the Act. IV. That the order of the third respondent made in the appeal rests entirely on his personal opinion and subjective satisfaction. V. That the order of the 4th respondent gives no reasons, not being a speaking order, the same is liable to be quashed and VI. That the decisions of Respondents 2 to 4 are vitiated since they were influenced by the circular issued by the Central Board of Revenue in the matter. 10. Re : Ground No. I. The learned counsel for the petitioner has not placed before us any decision or authority for his proposition that a prior ....
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....orities to classify under Item 17(1) the varieties of paper which do not fall under the said classification. The following varieties of paper fall under Item 17(1) : "blotting, toilet, target, tissue other than cigarette tissue, teleprinter, type writing, manifold, bank bond, art paper, chrome paper, tub sized paper, cheque paper, stamp paper, cartridge paper and parchment." (Underlining is ours) Printing and writing papers fall under Item 17(3). The Act does not define the several varieties of paper classified under different sub-heads under Item 17. In the absence of any definition of the several varieties of paper, they have to be understood in the manner understood by the paper trade and industry. 12. From books published regarding paper manufacture it is seen that paper is generally classified according to the process of manufacture, materials used in its making and the use to which the particular variety is put. 13. In the publication entitled Paper Trade Manual published by M/s. Raghunath Dutt and Sons Ltd., Calcutta relied on by the second respondent, it is stated at page 42 that paper is generally classified according to the use to which the particular varie....
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.... "Offset : A form of lithographic printing whereby mattfinish papers and boards can be satisfactorily printed in colour to register. Also a name given to papers specially made for this purpose; e.g. offset cartridge, offset printings. The principal characteristics are stability and freedom from fluff." 16. A booklet called Paper Trade Terms compiled by William Bond Wheel-wright and published by Silton Brothers Callaway Inc. Boston contains a glossary of the paper trade terms. This is what is stated in this booklet with regard to offset paper : "Offset paper : The prefix `offset' to book paper, coated book paper, or bristols etc., denotes generally a paper amenable to the requirements of offset lithography." 17. On a perusal of the publications relating to the manufacture of paper and paper trade terms, it is seen that both printing paper as well as cartridge paper are used for offset printing. But printing paper used for offset printing is not cartridge paper nor cartridge paper used for offset printing is printing paper. The two varieties of papers are different and their classification depends on the process of manufacture and materials used in the manufacture. None of t....
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....de by the applicants, but see no justification for interfering with the order in appeal. The revision application is accordingly rejected." 20. In Travancore Rayons Ltd. v. Union of India, 1969 (2) SCWR 814 = 1978 E.L.T. (J 378) the Supreme Court has laid down that even where the order of the Central Government affirms the order of the authorities below, the reasons for the decision must be given and where the order gives no reasons the same is void. In view of the said decision the order of the fourth respondent is clearly void. 21. Ground No. VI. The second respondent has not made any reference to the circular issued by the Central Board of Revenue nor has he relied on the same. Therefore, there is no substance in this ground of objection. The decision of the third respondent rests as stated earlier entirely on his personal examination of the paper in question and not on any other material. The fourth respondent has rejected the revision application without assigning any reasons. Therefore, it cannot be said that the decisions of Respondents 2 to 4 have been vitiated by the circular issued by the Central Board of Revenue. 22. In the light of the above discussion, we have....