Countervailing duty exemption on raw rabbit skins failed where statutory conditions for non-factory, non-powered manufacture were not proved.

Imported raw rabbit skins were held not to qualify for exemption from countervailing duty under the cited Central Excise notifications because the exemption applied only where the goods satisfied the specified conditions, including that they were not manufactured in a factory or that no process in or in relation to manufacture was ordinarily carried on with the aid of power. Countervailing duty under section 3(1) of the Customs Tariff Act was therefore attracted where the imported goods corresponded to excisable goods under the Central Excise Tariff. The record did not establish either exemption condition, and a bare assertion in appeal was insufficient to prove entitlement, so the exemption claim failed.

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Issues: Whether raw rabbit skins imported by the appellants were entitled to exemption from countervailing duty under the cited Central Excise notifications.

Analysis: Countervailing duty under section 3(1) of the Customs Tariff Act was attracted if the imported goods corresponded to excisable goods under the Central Excise Tariff. The exemption notifications relied upon operated only if the goods satisfied the specified conditions, namely that they were not manufactured in a factory or that no process in or in relation to their manufacture was ordinarily carried on with the aid of power. The record did not establish fulfilment of either condition, and a mere assertion in appeal was insufficient to prove entitlement to exemption.

Conclusion: The claim for exemption from countervailing duty was rejected and the finding was against the appellants.

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