Retrospective exemption for branded plastic bottles used as packing material removed the basis for denying SSI exemption.

Retrospective exemption under Notification No. 10/2013-CE(NT) covered clearances of plastic bottles used as packing material bearing the buyer's brand name for the relevant period. As the notification applied to those clearances, the basis for denying SSI exemption disappeared, and the resulting demand, interest and penalties could not be sustained. The assessee obtained consequential relief.

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Issues: Whether the retrospective exemption under Notification No. 10/2013-CE(NT) applied to clearances of plastic bottles used as packing material bearing the brand name of the buyer, so as to deny SSI exemption and sustain the demand, interest and penalties.

Analysis: The Tribunal noted that the notification granted retrospective exemption for clearances of plastic containers and plastic bottles meant for use as packing material by the person whose brand name the goods bore, for the relevant period. It also accepted that the dispute period fell within the coverage of the notification. In view of this statutory exemption, the basis for denying SSI exemption no longer survived.

Conclusion: The demand, interest and penalties could not be sustained and the appeal was allowed with consequential relief to the assessee.

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