Advance Licence exemption for recycled kraft paper upheld where chemical testing did not displace import documents and DGFT clarification.

Imported goods described in invoices and import documents as recycled kraft paper were treated as eligible for the Advance Licence exemption. The Tribunal noted that the DGFT clarification treated "recycled" as a technical characteristic, and that a chemical test showing kraft paper did not establish that kraft paper and kraft paper (recycled) were the same goods. In the absence of a technical definition supporting the Revenue's position, and given that similar imports had been allowed the benefit, the lower appellate order was left undisturbed and the exemption was upheld.

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Issues: Whether the imported consignment described as recycled kraft paper was entitled to the benefit of the Advance Licence exemption, notwithstanding the chemical test report relied on by the Revenue to treat it as non-kraft paper.

Analysis: The consignment was covered by invoices and import documents describing it as recycled kraft paper, and the DGFT clarification treated the word "recycled" as only a technical characteristic. The dispute had earlier been remanded for reconsideration in the light of that clarification. The denial of benefit rested on the chemical test for kraft paper, but the Tribunal found that kraft paper and kraft paper (recycled) were not the same goods. In the absence of any technical definition of kraft paper (recycled) supporting the Revenue's stand, and in view of similar imports having been allowed the benefit, no interference with the lower appellate order was warranted.

Conclusion: The imported goods were eligible for the Advance Licence exemption and the Revenue's challenge failed.

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