- (1.)Interpretation of an exemption notification dated 28. 02.1982, as amended by several notifications, is in question in this appeal which arises out of a judgment and order dated 05. 03.2003 passed by the customs, Excise and Gold (Control) Appellate Tribunal, West Zonal Bench at mumbai (for short, 'the Tribunal) in appeal no. E/1801/02, whereby and whereunder the appeal preferred by the appellant herein from a judgment and order dated 01. 02.2002 passed by the Commissioner of Central Excise and Customs (Appeals) vadodara, was dismissed.
(2.)The appellant, a company incorporated under the Companies Act, 1956, is engaged in the manufacture and production of excisable goods, i. e. cardboard containers. It is a small scale industry. It opted for the benefit contained in Section AA of chapter V of the Central Excise Rules, 1944 so as to avail the MODVAT credit of the specified duties on plastic coated paper known as 'ldpe coated paper'. It, however, did not avail of any MODVAT credit in respect of base paper or base paper-board. According to the appellant, the cardboard container is manufactured out of base paper having three layers and the outer layer consists of LDPE coated paper which is said to have been manufactured from the base paper apart from other inputs.
(3.)The appellant filed a MODVAT Declaration on or about 2.11.1992 purported to be in terms of Rule 57g of the Central Excise rules, 1944 declaring LDPE coated paper falling under sub-heading 4811.30 of the schedule appended to the Tariff Act as input which was intended to be used in or in relation to the final excisable goods, namely, Composite Paper Containers (Containers) meriting classification under sub-heading 4819.12. The appellant admittedly after filing the said MODVAT declaration availed of the MODVAT credit of specified duties paid on the inputs amounting to Rs. 35,185.13. The tariff rate for the said containers of sub-heading 4819.12 of the Schedule was stipulated at 35% ad valorem of basic excise duty and the corresponding special excise duty was at the rate of 15% on basic excise duty.