Exemption for coated precipitated chalk upheld where the notification covered it and no proof of end use was required.

Coated precipitated chalk was treated as falling within the expression "precipitated chalk" for exemption under Notification No. 23/55-C.E., because both were regarded as mineral fillers in technical literature. The Tribunal also held that the notification did not impose any condition requiring proof of end use as a prerequisite to exemption, so a demand for such evidence at the appellate stage was unjustified. On that basis, coated precipitated chalk qualified for the exemption and the Revenue's appeal failed.

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Issues: Whether coated precipitated chalk was covered by the expression "precipitated chalk" for purposes of exemption under Notification No. 23/55-C.E. dated 29-4-1955, and whether exemption depended upon proof of end use.

Analysis: The Tribunal followed its earlier view that coated precipitated chalk fell within the expression "precipitated chalk" because both were recognised as mineral fillers in literature. It further held that the notification did not impose any condition precedent requiring proof of end use. In the circumstances, the demand for evidence of end use at the appellate stage was not justified.

Conclusion: Coated precipitated chalk was eligible for the exemption under the notification, and the Revenue's appeal failed.

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