HINDUSTAN NEWSPRINT LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THIS appeal has been filed against the OIA No. 156/2001 dated 18.04.2001 passed by the Commissioner of Customs and Central Excise (Appeals), Cochin.

(2.) THE appellants manufacture Newsprint out of Pulp produced by them in their unit at Newsprint Nagar, Kottayam District. The main issue in this appeal is the entitlement of the appellants to the benefit of exemption Notification No. 163/67 dated 21.07.1967, as amended, in respect of the Newsprint manufactured by them. The period involved is from 9/87 to 2/88. The amount involved is Rs. 4,02,54,977.30. According to the above mentioned Notification, paper containing mechanical wood pulp amounting to not less than 50% of fibre content were exempted from the whole of duty of excise. The case of the department is that the appellants do not fulfill the condition that the paper manufactured by them contained mechanical wood pulp amounting to not less than 50% of fibre content. Hence, they would not be entitled for the benefit of the Notification. On the other hand, it is the contention of the appellants that they are manufacturing Newsprint from out of 70% chemic -mechanical wood pulp and 30% sulphate chemical pulp. According to the appellants, chemi -mechanical wood pulp is just another variation of mechanical wood pulp. If this is accepted, the appellants would be fulfilling the conditions of the Notification. While denying the benefit of the Notification, the Commissioner (Appeals) has relied on the order of CEGAT in the party's own case for an earlier period in Final Order No. 970/99(C) dated 30.09.1999. The appellants challenged the above mentioned Final Order of the CEGAT before the Apex Court and the Apex Court in Civil Appeal No. 2245/2000 dated 17.03.2005 passed the following order:

(3.) S /Shri G. Sampath and S. Raghu, the learned Advocates, appeared for the appellants and Shri Ganesh Havanur, the learned SDR, for the Revenue.