S.D. Jha, Vice-President (J)

1. The main question arising for decision in this appeal by the appellant-manufacturer - a proprietary concern in the small scale sector is whether for judging the eligibility of the appellants to benefit of exemption under notifications 71/78 dated 1-3-1978 and 80/80 dated 9-6-1980 in respect of laminated paper cleared by them during the period 1978-79 to 1981-82 till 28-2-1982 when laminated paper itself was exempt from payment of Central Excise duty under notification 63/82 dated 28-2-1982, the value of clearances of laminated cotton fabrics and laminated man made fabrics (HDPE) the two exempt under notification 100/77 dated 3-6-1977 as amended by notification 192/77 dated 18-6-1977 are includible as excisable goods or not ?

2. Present proceedings arise against the appellants under the following circumstances. The appellants are engaged in laminating cotton fabrics, man made fabrics and paper on job work basis. As already said laminated cotton fabrics and laminated man made fabrics were exempt from Central Excise duty under notification [00/77 dated 3-6-1977 as amended by notification 192/77 dated 18-6-1977. Laminated paper also became exempt from 28-2-1982 under "notification 63/82. Before 28-2-1982 laminated paper falling under T.I. 17(2) was chargeable to Central Excise duty in terms of notification 71/77 dated 18-4-1977 as amended by notification 25/79 dated 1-3-1979. Earlier the appellants had licences in respect of the three items of manufacture but after laminated cotton fabrics and laminated man made fabrics became exempt from duty they held licence only for laminated paper. With respect to laminated paper the appellants claim to avail benefit of exemption under notification 71/78 till 18-6-1980 and notification 80/80 thereafter. Notification 71/78 dated 1-3-1978 granted exemption in respect of first clearances of excisable goods specified in the notification cleared for home consumption upto an aggregate value not exceeding rupees five lakhs cleared on or after the first day of April in any financial year,' by or on behalf of a manufacturer, from one or more factories from the whole of the duty of excise leviable thereon subject to the conditions set out in the notification. There is no dispute that laminated paper is specified at serial 22 in the Table appended to the notification. The main condition relevant for the purpose of appeal is condition (a) reproduced below :

(a) the exemption contained in this notification shall not be applicable to a manufacturer -