Duty-paid wrapper paper qualified for Rule 56A(2) movement benefit, restoring the Collector (Appeals)' order.

Duty-paid wrapper paper used to pack other varieties of paper was treated as eligible for the special movement procedure under Rule 56A(2) of the Central Excise Rules, 1944. The question of entitlement was answered in the affirmative by the Karnataka High Court, and the Tribunal then modified its earlier order accordingly. As a result, the assessee was held entitled to the Rule 56A(2) benefit and the Collector (Appeals)' order was restored.

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Issues: Whether duty-paid wrapper paper used in packing other varieties of paper was entitled to the benefit of the special procedure for movement of duty-paid materials, component parts or finished products for use in the more convenient distribution of other varieties of paper under Rule 56A(2) of the Central Excise Rules, 1944.

Analysis: The question referred was answered by the Karnataka High Court in the affirmative. In view of that answer, the Tribunal modified its earlier order and restored the order of the Collector (Appeals).

Conclusion: The assessee was held entitled to the benefit of Rule 56A(2), and the order of the Collector (Appeals) stood restored.

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