M/S. Coastal Paper Ltd vs Commnr. Of Central Excise, ...

The Supreme Court examined Notification No. 22/94-CE dated 01.03.1994, which provides a concessional excise duty rate of 5% for paper made from non-conventional materials, specifically requiring that pulp must contain at least 75% of materials other than bamboo, hard woods, soft woods, reeds, or rags. The Court held that pulp made from waste gunny bags and jute waste does not qualify as 'rags' under the Notification, thus entitling the assessee to the concessional rate. The ruling clarifies the interpretation of 'rags' in the context of excise duty exemptions for paper manufacturing.