Export packing materials under bond were covered by Rule 13, so no excise duty applied to jute packsheets and twine.

Packsheets and stitching twine used to pack jute consignments exported under bond were treated as covered by the protection under Rule 13 of the Central Excise Rules, 1944, so no duty was payable on those packing materials when used for export consignments. The Tribunal followed its earlier decisions on the same provision and rejected the Department's view that packing materials fell outside Rule 13. The assessee's position was accepted and the Department's appeal failed.

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Issues: Whether packsheets and stitching twine used for packing jute consignments for export were liable to duty or fell within the scope of export under bond under Rule 13 of the Central Excise Rules, 1944.

Analysis: The issue had already been answered by earlier Tribunal decisions on the same statutory provision. The Tribunal followed its prior ruling that jute packsheets and jute twine used for packing goods exported under bond were covered by the protection available under Rule 13, and that no duty was payable on such materials when used for export consignments. The Department's contention that packing materials were outside the rule was therefore rejected.

Conclusion: The issue was decided in favour of the assessee, and the Department's appeal failed.

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