Export packing exemption for cartons and boxes excluded from aggregate clearances where substantive export use is proved.

Corrugated cartons and duplex boxes supplied to merchant exporters for packing export goods were treated as eligible export-packing clearances, so their value was not required to be included in the aggregate value for small scale exemption under Notification No. 8/2002-C.E. The Tribunal accepted that once the substantive condition of use in export goods was satisfied, incomplete procedural compliance such as deficiencies in supporting documentation did not justify denial of the exemption. The earlier decision on the same issue was followed, and the cartons and boxes were excluded from the clearance computation.

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Issues: Whether the value of corrugated cartons and duplex boxes cleared to merchant exporters for packing export goods was required to be included in the aggregate value of clearances for determining eligibility to the small scale exemption under Notification No. 8/2002-C.E.

Analysis: The cartons supplied by the appellant to merchant exporters were used for packing goods that were exported, and Form-H along with supporting enclosures was produced to establish that the supplies were made for export packing. The Tribunal accepted that where the substantive requirement of use in export goods is satisfied, the mere absence of complete procedural compliance does not justify denial of the exemption. The reasoning adopted in the earlier decision on the same issue was followed.

Conclusion: The value of the cartons and boxes used for packing exported goods was not required to be added to the aggregate clearances, and the appeal was allowed.

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