Home consumption exemption denied for export-bound clearances routed through a godown, with duty and penalty sustained.

An exemption confined to clearances for home consumption could not apply to corrugated boxes ultimately supplied to buyers in Nepal and Bhutan, whether moved directly from the factory or first routed through the assessee's own godown. On that factual basis, the removals remained export-related clearances rather than domestic consumption, so the exemption under Notification No. 105/80 was unavailable. The consequent removals without licence, without duty payment and without the prescribed declaration and procedural compliance attracted the central excise provisions, and the duty demand and penalty were upheld.

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Issues: Whether corrugated boxes cleared by the appellants to buyers in Nepal and Bhutan, whether directly from the factory or through their own godown, were clearances for home consumption so as to qualify for exemption under Notification No. 105/80 dated 19-6-1980, and whether duty demand and penalty for removal without licence and without following prescribed procedure were sustainable.

Analysis: The exemption under Notification No. 105/80 was confined to goods cleared for home consumption. The factual materials showed that the goods were ordered by buyers in Nepal and Bhutan and were ultimately supplied outside India. Even on the appellants' version that the goods first went to their own godown, the subsequent clearance remained an export clearance and could not be treated as home consumption. Since the exemption was unavailable, the removals without licence, without payment of duty and without compliance with the prescribed declaration and procedural requirements attracted the relevant central excise provisions.

Conclusion: The appellants were not entitled to exemption; the duty demand and penalty were upheld.

Ratio Decidendi: An exemption limited to clearances for home consumption cannot be extended to goods ultimately supplied outside the country, whether removed directly from the factory or through an intermediary godown.

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