ITC LTD. (TRIBENI TISSUES DIVISION) Vs. CCE

JUDGEMENT

(1.) THE appellants are manufacturing Paper and Paperboard classifiable under Chapter 48 of the Central Excise Tariff, 1985 out of unconventional raw materials. Apart from clearing the goods for home -consumption, the appellants are also exporting the said product to Nepal. The appellants claimed the benefit of concessional rate of duty as envisaged in Notification No. 138/86 -CE dated 1.3.1986, for the goods exported to Nepal. The dispute in the instant case is as to whether the benefit of the said Notification has to be restricted to the clearances for 'home -consumption' or the same is to be extended to the goods cleared for export (including Nepal). Whereas the Department contends that clearance of the goods to Nepal cannot be termed as clearance for 'home -consumption' and as such, cannot be extended the benefit of the Notification in question, the appellant's stand is that the said Notification grants exemption to clearances made from the assessees' factory without making any distinction to the export -goods or the goods cleared for 'home -consumption' and as such, the concessional rate provided therein is applicable for the export -goods also.

(2.) AS the controversy revolves around the Notification No. 138/86 -CE dated 1.3.1986 as amended, the same is being reproduced below for better appreciation:

(3.) THIS notification shall come into force on the 1st day of April, 1986. Notification No. 139/86 -CE, dated 1.3.1986 as amended by Notifications No. , dated 24.4.1986; No. 24/87 -CE, dated 1.3.1987; No. 66/88 -CE, dated 1.3.1988; No. , dated 1.3.1989; No. 43/90 -CE, dated 20.3.1990 and No. i09/90 -CE, dated 16.5.1990.