Exemption for converted paperboard applied where the intended use for cartons, boxes and cases was established by the record.

Converted types of paper and paperboard intended for manufacture of cartons, boxes, containers and cases fell within Notification No. 101/94-CE, and the intended-use condition was not disproved. The record showed that the assessee was clearing converted paperboard and also producing collapsible boxes or cases suitable for packing, so the finding that it was making only bags could not stand. On that basis, the exemption was available both to the converted paperboard cleared as such and to the final collapsible boxes and cases made from it, and the duty demand and consequential order were unsustainable.

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Issues: Whether the appellant was entitled to exemption under Notification No. 101/94-CE dated 04.05.1994 in respect of converted paperboard and products cleared by it.

Analysis: The notification exempted converted types of paper and paperboard intended for manufacture of cartons, boxes, containers and cases. The lower authorities denied the benefit on the premise that the appellant was making bags. The record, however, showed that the appellant was manufacturing and clearing converted paperboard and also producing collapsible boxes or cases suitable for packing. The intended use requirement was not disproved, and the notification was applicable to converted paperboard cleared as such as well as to the final collapsible boxes and cases produced from it.

Conclusion: The appellant was entitled to the exemption under Notification No. 101/94-CE, and the duty demand and consequential order were unsustainable.

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