AP PAPER MILLS LTD Vs. ASSISTANT COLLECTOR

JUDGEMENT

(1.) The Andhra Pradesh Paper Mills Limited, Rajahmundry (hereinafter called 'the Mills'), a public limited company, 1 as filed this writ petition for the issue of a writ of mandamus directing the respondents, (1) the Assistant Collector of Central Excise, Inlcgrated Divisional Office, Rajahmundry; (2) Collector of Central Excise, Guntur; and (3) Union of India; to allow the Mills to clear the different varieties of p iper manufactured by them without insisting on payment of duty on the wrapping paper used internally for packing reams and reels of other varieties of paper manufactured by them.

(2.) The facts leading to the filing of the writ petition are as follows:The mills manufactures different varieties of paper in addition to 'Mill wrapper' which is used for packing other varieties of paper and which is used and consumed in the factory itself without being fold to outsiders.

(3.) Under section 3 of the Central Excise and Salt Act, 1944 (hereinafter called 'the Act'; excise duty shall be levied an4 collected in such a manner as may be prescribed on all excisable goods at the rates set forth in First Schedule to the Act. Under sub-section (2) hereof, Central Excise may by notification in the Official Gazette fix for the purpose of levying the said duties, tariff values on the articles mentionec in the First Schedule as chargeable with advalorem duty. Different tariff values may be fixed for different classes on descriptions of the same article as provided by sub section (3). Section 4 of the Act provides for the valuation of the excisable goods for the purpose of charging of duties of excise on the excisable goods. Sub-section (3) (d) of Section 4 lays down the method of valuation in relation to excisable goods and it reads as follows.