JAYANT FIBRE CONTAINERS PVT LTD Vs. A V VENKATESWARAN JT SECRETARY

JUDGEMENT

(1.) In these two petitions, the petitioners, who licensed manufacturers of paper, challenge the orders passed by the Central Excise authorities rejecting their claim for concession in respect of duty of accordance with Notification No. 163/65-C.E. dated 1st October, 1965 and also under Notification No. 135/67-C.E. dated 3rd July, 1967.

(2.) The petitioners manufacture corrugated boards which are assessed to excise duty at the concessional rate of 7 paise per kilogramme rate of 7 paise per kilogramme as prescribed by the Government of India, Ministry of Finance (Department of Revenue and Insurance) under Notification No. 135/67-C.E. dated 3rd July, 1967. The petitioners requested the Assistant Collector, Central Excise, Bombay, to grant them concession in duty as provided in the Notification No. 163/65-C.E., dated 1st October, 1965 as they had commenced production of corrugated boards in their factories from 1st May, 1966. The Assistant Collector rejected their request observing that since the concessional rate of duty of 7 paise per kilogramme payable on corrugated boards manufactured out of duty paid paper has been specifically prescribed by Notification No. 135/67-C.E., dated 3rd July, 1967, the concession in uduty provided under Notification No. 163/65-C.E., dated 1st October, 1965, is not applicable to corrugated boards.

(3.) An appeal filed by the petitioner was dismissed by the Collector, Central Excise, Bombay, who held that the petitioners were assessed to duty at a concessional rate of 7 paise per kilogramme as specifically prescribed under Government of India Notification No. 135/67-C.E. dated 3rd July, 1967, and, therefore, further concession under Notification No. 163/65-C.E., dated 1st October, 1965 could not be allowed to the corrugated board manufactured by the petitioners. He observed that the concession granted under Notification No. 163/65-C.E., dated 1st October, 1965 is on the tariff rate of the excisable products mentioned therein. He, therefore, held that the Notification No. 163/65-C.E. cannot be made applicable to the petitioners' corrugated board. The petitioners thereafter filed an application for revision to the Central Government but that was also dismissed. The Joint Secretary to the Government of India, Ministry of Finance (Department of Revenue and Insurance) observed : "In this context, the Government of India observe that Notification No. 135/67-C.E. was issued subsequently to Notification No. 163/65-C.E. and the latter notification prescribes a specific exempted rate of duty for corrugated boards. It is thus clear that the rate of 7 paise prescribed in Notification No. 135/67-C.E. cannot be read with the previous notification and that it stands independently of the earlier notification."