Case: Sirpur Paper Mills Ltd Vs. Director Of Inspector, Commissioner Of Central Excise And Another

CA No. 3328 of 1981 1. So far as this appeal is concerned, the question is whether the duty of excise whereof tax credit is available would be in respect of such duty of excise as is chargeable under the Central Excises and Salt Act alone. The question has already been answered by this Court in the case of Associated Cement Co. Ltd. v. Director of Inspection, Customs and Central Excise. In that case, it was held that the tax credit has to be confined to the Central Excises and Salt Act only. In view of that this appeal is dismissed. No order as to costs CA No. 3300 of 1981 2. The facts of this case are not in dispute. The respondent Company is manufacturing various types of papers. The contention of the Department is that "paper" (all sorts) will include all sorts of papers manufactured by the company and all types of papers have to be taken together to find out whether the production made in the base year has been exceeded. The High Court has taken the view that the base year production must be taken separately for each type of paper manufactured by the company. The High Court has pointed out that the goods are excisable as and when produced and are assessable under various tariff entries separately. Therefore, each type of papers which are excisable separately will be entitled to relief also separately

Decision reasoning: 0[ds]2. The facts of this case are not in dispute. The respondent Company is manufacturing various types of papers. The contention of the Department is that "paper" (all sorts) will include all sorts of papers manufactured by the company and all types of papers have to be taken together to find out whether the production made in the base year has been exceeded. The High Court has taken the view that the base year production must be taken separately for each type of paper manufactured by the company. The High Court has pointed out that the goods are excisable as and when produced and are assessable under various tariff entries separately. Therefore, each type of papers which are excisable separately will be entitled to relief also separately