Strict compliance for exemption claims fails where mill board is non-homogeneous and contains colouring matter.

Printed cartons made from the disputed mill board were not eligible for exemption under Notification No. 279/82-C.E. because the sample was found to have distinct smooth and rough surfaces, be easily separable into two layers, and contain colouring matter. On that material, the board could not be treated as homogeneous mill board wholly made of mill board, as required by the notification. The claimant bore the burden of proving strict compliance with the exemption conditions, and the test reports did not satisfy that burden. The exemption was therefore denied and the duty demand was sustained.

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Issues: Whether printed cartons manufactured from the disputed mill board were entitled to exemption under Notification No. 279/82-C.E. dated 22-11-1982 as amended, and whether the board satisfied the requirement of being homogeneous and wholly made of mill board.

Analysis: The chemical test reports showed that the sample was a sheet with distinct smooth and rough surfaces, was easily separable into two layers, and contained colouring matter. On that basis, the board could not be treated as homogeneous mill board answering the description in the exemption notification. The claimant had the burden to establish eligibility to exemption, and the test material did not discharge that burden.

Conclusion: The exemption was not available and the duty demands were rightly sustained.

Ratio Decidendi: The party claiming exemption under a notification must establish strict compliance with its conditions, and material showing non-homogeneous composition and the presence of colouring matter is sufficient to deny the exemption.

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