Board approval for export-production goods sustained exemption benefit under Customs notification where Revenue failed to rebut use nexus.

Goods imported for use in producing export goods were considered eligible for exemption under Notification No. 52/2003-Cus. because the appellant had obtained approval from the Board of Approval for that stated purpose. The Tribunal treated that approval as sufficient where the Revenue produced no scientific test or expert evidence to show that the goods were unrelated to, or unsuitable for, the production process. On that basis, the notification benefit was upheld and denial of exemption was held unsustainable.

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Issues: Whether the appellant was entitled to the benefit of Notification No. 52/2003-Cus. dated 31-3-2003 on the basis of approval granted by the Board of Approval for the imported goods used in production of export goods.

Analysis: The notification contained a specific entry for goods required in relation to production of export goods, and the appellant had obtained approval from the Board of Approval, which had examined the application and accepted the goods for the stated purpose. The Revenue did not dislodge that approval by any scientific test or expert evidence showing that the goods were not conducive to the production process or were irrelevant to it. In these circumstances, the Tribunal treated the Board's approval as sufficient for extending the notification benefit.

Conclusion: The appellant was entitled to the benefit of the notification and the denial of exemption was not sustainable.

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