SURENDRA SEHGAL Vs. UNION OF INDIA

JUDGEMENT

(1.) The main question for consideration in these writ petitions is whether paper converted by subjecting it to printing of colour and subsequently waxed by the peti- tioners, sold to M/s Modern Food Industries (Ltd.) for wrapping bread, is eligible to full exemption of duty of excise by virtue of notification No. 68 of 1976, or to partial exemption under notification No. 71 of 1976 (hereinafter referred to as the first and the second notification respectively) both dated 16th of March 1976. These two writ petitions, involving the same question, were heard one after the other. The same are, therefore, being disposed of by a common judgement.

(2.) The goods produced by the petitioners, covered by Item No. 17 of the Tariff set out in the first Schedule to the Central Excise and Salt Act, 1944 (hereinafter referred to as the Tariff and the Act), were initially declared and assessed as 'waxed paper' eligible to partial exemption under the second notification. The petitioners are now claiming benefit of full exemption under the first notification.

(3.) The present controversy arose when Surender Sehgal and M/s. Sehgal Puri Pvt. Ltd. petitioners in the first writ petition, disputed the assessment and claimed refund of duty paid in respect of the period 1st of March. 1976 to 23rd of August, 1977 and from 1st of Septemebr 1972 to 31st of January 1978. The Assistant Collector, by his order in original dated 24th of March 1979, rejected the claim. In appeal, the Appellate Collector confirmed the order. The Central Government rejected the petitioners' revision application by the impugned order dated 28th of October 1980 holding that converted paper subjected to printing with colour and waxed paper are two distinct products; that the paper in question is printed with colour and subsequently waxed; and that waxed paper so produced by the petitioners will get only partial exemption under the second notification. Technical literature and expert opinions were relied upon to support thesse conclusions.