Exemption subject to end-use verification: proper officer may examine actual utilisation to prevent misuse of concessional duty.

Concessional excise duty under Notifications Nos. 68/76 and 69/76 was treated as available for white printing paper supplied for educational use only if the proper officer was satisfied about the actual end use. The note explains that the officer could verify utilisation after clearance to prevent diversion, misuse, or misutilisation of concessional goods, and that the exemption could not be read so broadly as to bar inquiry merely because the paper had been allotted under regulatory directions. The matter was remanded for fresh verification of actual utilisation, so the exemption claim was not finally accepted on the existing record.

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Issues: Whether concessional excise duty under Notifications Nos. 68/76 and 69/76 dated 16-3-1976 was available on supply of white printing paper for the stated educational purpose, and whether the proper officer could enquire into actual utilisation of the paper before granting the concession.

Analysis: The supply was treated as connected with educational purposes on the facts of the case, but the exemption was held to depend on the satisfaction of the proper officer under the notifications. To prevent diversion, misuse, or misutilisation of concessional paper after clearance, the officer was held competent to verify actual use. The view was also taken that the exemption could not be read so broadly as to exclude inquiry into the end use merely because the paper had been allotted under the regulatory order and related governmental directions.

Conclusion: The matter was remanded for verification of actual utilisation, so the exemption claim was not finally accepted on the existing record.

Final Conclusion: The appeal succeeded only to the limited extent that the exemption claim required fresh examination by the adjudicating authority, and the case was sent back for that purpose.

Ratio Decidendi: Where an exemption notification makes concessional duty subject to the satisfaction of the proper officer, the authority may examine the actual end use of the goods to ensure that the concession is not misused.

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