- (1.) The only point for determination in this appeal against the judgment of the Customs, Excise and Gold (Control) Appellate tribunal (CEGAT) is whether the appellant is entitled to the exemption from such portion of excise duty as has been spelt out in Notification No. 108 of 1981. central Excises, dated 24/4/1981 read with Notification Nos. 83 of 1984 central Excises, dated 2/4/1984 and 214 of 1984 central Excise, dated 9/11/1984. (Though there is yet another notification bearing No. 139 of 1984, dated 2/6/1984 that however is not material for our purpose. )
(2.) All the aforesaid notifications owe their origin to the central government's decision to attract investment in industries manufacturing paper, the bulk of which relating to writing and printing was being imported at the relevant time. On this subject Minister of State for Industries made a speech on the floor of the House on 24/4/1981 regarding incentives, inter alia, to paper industry and stated about the excise duty concession to the extent of 50% to those industries which had commenced clearance for the first time during the period from 1/4/1979 to 31/3/1984.
(3.) This policy statement saw the first of the aforesaid notifications which was issued on 24/4/1981 itself and exempted printing and writing paper from so much of duty of excise leviable thereon as was in excess of the duty calculated at the rate of 50% of the rate of duty leviable on the said goods. That notification was issued in exercise of power conferred by Rule 8 (1 of the central Excise Rules, 1944. It had three provisos. The first of these stated, inter alia, that exemption would be available to the aforesaid goods which were manufactured in a factory whose clearance had commenced from 1/4/1979. The second proviso is important for our purpose which read as below: "Provided further that the exemption contained in this notification shall not apply to clearances of the said goods effected after the expiry of a period of five years from the date of first clearance of the said goods from such factory. ";