- (1.) The facts in this case are undisputed. The petitioner manufactures millboard from waste paper and board cuttings. The mill board manufactured by the petitioner was excisable under Item 17 of the First Schedule to the Central Excises & Salt Act, 1944 (referred to as the Act). The dispute centres around the interpretation of millboard under Exemption Notification Nos. 44/83 and 45/83 (hereinafter referred to as the said Notifications).
(2.) Notification No. 44/83-C.E. was issued on 1-3-1983 under Section 8(1) of the Central Excise Rules, 1944 (referred to as the Rules). This notification provided for exemption of diverse items of paper and paperboard of the description specified in column 2 of the Table to the Notification from so much of the duty of excise as was in excess of the amount calculated at the rates specified in the corresponding entry in column (3) of the said Table. Item No. 12 of the said Notification reads as under: (1) (2) (3) (4) 12. Millboard & Straw-board. Ten per cent ad valorem plus five hundred twenty-five rupees per metric ton. The said Notification contains an explanation which states that for the purpose of the Notification, "Millboard means any unbleached homogeneous board having a thickness exceeding 0.50 millimetre and made out of waste papers with or without screening and mechanical pulp but without any colouring material being added thereto."
(3.) Notification No. 45/83 also issued under Rule 8(1) of the Rules granted further concession in respect of millboard. In this notification also millboard has the identical definition as in Notification No. 44/83.;