C.C.E. Vs. KHANNA PAPER MILLS LTD.

JUDGEMENT

(1.) THESE three appeals by the Department are on the same issue relating to the same respondents and cover different periods. The cross -objection 95/05 is related to Excise Appeal No. 607/05, basically supporting the order of the Commissioner.

(2.) HEARD both sides extensively.

(3.) TO appreciate the controversy in proper perspective it would be appropriate to consider the history of formation of the three manufacturing facilities. Satya Paper Mills, a partnership firm set up a unit in 1981 to manufacture writing and printing papers and in October, 1985, the said Satya Paper Mills was taken over by M/s Khanna Paper Mills Ltd. which was incorporated as a company on 2.2.85. M/s Khanna Paper Mills Ltd. started a manufacturing facility to manufacture high quality duplex board in March, 1996. Another company by name M/s R.C. Paper Mills Pvt. Ltd. was incorporated in December, 1989 which set up a factory in 1992 for manufacturing duplex board and became a Limited Company in 1995 and got amalgamated in December 2000 with Khanna Paper Mills Ltd. In other words, the manufacturing facility started in 1981 by erstwhile Satya Paper Mills and manufacturing facility of Khanna Paper Mills Ltd. started in 1996 and manufacturing facility of erstwhile R.C. Paper Mills Pvt. Ltd. started in 1992 came under the ownership of one company from December 2000.