Exemption for corrugated board depends on proof that duty-paid kraft paper was used; claimant bears the burden.

Exemption for corrugated board manufactured from kraft paper was conditional on proof, to the satisfaction of the proper officer, that the kraft paper was duty-paid and had suffered excise duty at the prescribed rate. The burden to establish that factual foundation lay on the claimant seeking the benefit, because the goods were otherwise dutiable. The appellant failed to prove that the kraft paper used was duty-paid; the explanation about missing gate passes was rejected, and the authorities found the paper had in fact enjoyed exemption under another notification. The exemption was therefore denied and the challenge to the notice and Tribunal order failed.

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Issues: Whether the appellant was entitled to exemption on corrugated board manufactured out of kraft paper, and whether the burden lay on the appellant to prove that the kraft paper used had suffered the requisite duty of excise.

Analysis: The exemption was conditional upon proof to the satisfaction of the proper officer that the corrugated board had been produced out of duty-paid kraft paper on which excise duty had been paid at the prescribed rate. The goods were otherwise dutiable, and the person claiming the exemption was required to establish the factual foundation for the benefit claimed. The appellant failed to prove that the kraft paper used was duty paid; the explanation regarding missing gate passes was not accepted, and the authorities found that the kraft paper had in fact enjoyed exemption under another notification.

Conclusion: The appellant was not entitled to the exemption, and the challenge to the notice and the Tribunal's order failed.

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