Tribunal rules corrugated cartons for packing exported shoes not part of SSI exemption

The Tribunal dismissed the Revenue's appeal against the Commissioner (Appeals) decision, ruling that corrugated cartons supplied for packing exported shoes should not be included in total clearance for claiming the SSI exemption. Citing precedent, the Tribunal emphasized the lack of evidence to prove that the cartons were not exported with the shoes. The judgment clarifies that goods used for export should not be considered in determining eligibility for the small scale exemption, highlighting the requirement for concrete evidence to support Revenue claims.

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Issues involved: Interpretation of eligibility for SSI exemption based on the clearance of corrugated cartons used for packing exported shoes.

Summary:

Issue 1: Eligibility for SSI exemption
The Revenue appealed against the Commissioner (Appeals) decision regarding the treatment of corrugated cartons supplied for packing exported shoes in relation to SSI exemption eligibility. The Revenue argued that these cartons should be included in total clearance for claiming the exemption. However, referencing the case of CCE Kanpur Vs M/s. International Corrugators, the Tribunal rejected the Revenue's contention. The Tribunal emphasized that there was no evidence presented by the Revenue to prove that the cartons were not actually exported along with the shoes. The Tribunal ruled that the exported goods should not be considered for determining eligibility for the small scale exemption. Consequently, the appeals were dismissed based on the precedent set by the Tribunal.

This judgment clarifies the criteria for SSI exemption eligibility in cases involving the clearance of goods used for export purposes, emphasizing the need for concrete evidence to support claims made by the Revenue.

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