S.L. Peeran, Member (J)

1. The appeals in reference relate to the grant of exemption of duty, with reference to interpretation and applicability of Notification No. 142/81, dated 8-7-1981 to the appellant, who are manufacturers of a variety of paper known as mill wrapper. Their contention is that mill wrapper is nothing but Kraft Paper, which is an unbleached variety of paper containing not less than 75% by weight of the pulp made from Bagasse. They contend that they have fulfilled the terms of the said Notification and are entitled for full exemption from the payment of the duty. Alternatively, they have contended that mill wrapper is always consumed captively and is not liable to duty under Notification No. 187/83-C.E., dated 9-7-1983 subject to the conditions set out therein. Yet if this plea is also not accepted, even so, mill wrapper manufactured and captively consumed inside the factory should be, charged to duty only at the rate of Rs. 900/- per MT + 5% SED which was the rate approved by the Department in respect of mill wrapper in the Classification List effective from 2-4-1983.

2. Appeal No. 161/87 deals with the dispute pertaining to the non-approval of classification