STADFAST PAPER MILLS Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioner Company is a manufacturer of different types of wrapping and packing papers falling under Item 17 of the First Schedule to the Central Excises and Salt Act, 1944. By a Notification No. 45/73, dated 1st March 1973 the Central Government, in exercise of powers under Rule 8 of the Rules, exempted the paper of the varieties described therein, falling under Item 17 of the First Schedule to the Act, cleared by any manufacturer during any financial year upto the quantity prescribed in the Notification from so much of the duty of the excise leviable thereon as was specified in the Table to the Notification. Under the Table on the clearance of paper upto the first 100 metric tonnes the extent of exemption was specified as 75%, on the next 100 metric tonnes of paper cleared the extent of exemption was specified as 25% and on the next 200 metric tonnes the extent of exemption was specified as 15%.

(2.) BY the show cause notice dated 5th May 1977 (Annexure 'C') the petitioner was called upon to show cause why an amount of Rs. 21,185.38 should not be recovered under Rule 10 read with Rule 173 -J of the Central Excise Rules as the said amount was short -levied for the clearance of paper between 16th March 1976 to 30th April 1977. It was stated that the petitioner had charged the price equal to assessable value approved plus effective rate of duty at 30% ad valorem while the petitioner has paid duty of excise at the rate of 7.5% ad valorem.

(3.) [It is an admitted fact that Explanation to Section 4(4) is added by the Finance Act, 1982 (14 of 1982) with effect from 1 -10 -1975. Section 4(4)(d) defines the word 'value' in relation to any excisable goods.] It reads as under :