- (1.) These appeals are preferred against an order of the government of India made on a revision petition filed by the appellant under Section 36 of the central Excise Act, as it obtained at the relevant time. It dismissed the revision petition. The controversy herein lies in a narrow compass. The appellant is engaged in the manufacture of corrugated boards. He was availing the benefit of the exemption notification contained in Notification No. 135 of 1967 dated 3/7/1967.
(2.) On 8/9/1967, the government of India issued another exemption notification with respect to paper - being Notification No. 208 of 1987 - which reads as follows: "In exercise of the powers conferred by sub-rule (1 of Rule 8 of the central Excise Rules, 1944, the central government hereby exempts the first 1000 metric tonnes of paper, all sorts, falling under Item 17 of the First Schedule to the central Excises and Salt Act, 1944 (I of 1944 (other than strawboard, millboard, newsprint, tissues including cigarette tissue, glassine paper and grease proof paper) cleared by any manufacturer for home consumption during any financial year, from seventy-five per cent of the duty of excise leviable thereon under the said item read with any notification being in force issued by the central government in relation to the duty so leviable: Provided that (i) the said paper, all sorts, is manufactured in a factory having no plant attached thereto for making bamboo pulp; (Ii) the said exemption shall not be admissible to a manufacturer who avails himself of any of the concessional rates of duties admissible under Columns 4, 5 (a) , 5 (b) and 5 (c) of the Table below the notification of the government of India in the Ministry of Finance (Department of Revenue) No. 163 of 1965 central Excises, dated the 1/10/1965 and Notwithstanding anything hereinbefore contained in respect of clearances of paper, all sorts, made during the remaining parts of the financial year the benefit of exemption under this notification shall be available only up to a maximum of 5600 metric tonnes. Explanation- For the purposes of this notification 'strawboard' and 'millboard' shall have the same meaning as is assigned to them in the notification of the government of India in the Ministry of Finance (Department of Revenue) No. 35 of 1964 central Excises, dated the 1/03/1964. "
(3.) Since the notification refers to Tariff Item 17 of the First Schedule (as it then obtained) it would be relevant to notice the said tariff item. It reads thus :"17. Paper, all sorts (including paste board, millboard, strawboard and cardboard) in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power:;