1994 (2) TMI 149 - AT - Central Excise

Tribunal Upholds Collector's Decision on Printed Carton Duty Exemption

The Tribunal upheld the decision of the Collector (Appeals) regarding the classification and eligibility for duty exemption of printed cartons under the ... Paper and paper board - Exemption Issues:1. Classification of printed cartons for duty exemption under Central Excise Tariff.2. Eligibility for exemption under Notification 279/82 dated 22-11-1982.3. Interpretation of test reports on the composition of the cartons.4. Burden of proof for claiming exemption under a notification.Analysis:1. The case involved an appeal against the order passed by the Collector, Central Excise (Appeals) Bombay regarding the classification of printed cartons for duty exemption under the Central Excise Tariff. The appellants claimed full exemption from duty under Notification 279/82 dated 22-11-1982 for printed mill board cartons and boxes. The test reports indicated that the cartons contained colouring matter and could be easily separated into two layers, leading to a dispute over their classification.2. The main contention raised by the appellants was that the authorities failed to establish definitively that the cartons were not homogenous and that any colouring matter was added to the mill board. They argued that the presence of colouring matter was due to using mixed waste paper, which inherently contains color variations. The appellants claimed that the boards being easily separable into two layers did not automatically disqualify them from being considered homogenous under the notification.3. The Tribunal analyzed the test reports provided by the Deputy Chief Chemist and the Chief Chemist, which confirmed the presence of colouring matter in the cartons and described the composition of the samples. The reports highlighted that the cartons could be separated into two layers and were not homogenous as required by the notification. The Tribunal agreed with the findings of the Collector (Appeals) that the cartons did not meet the criteria of being made wholly out of mill board as per the notification.4. In addressing the burden of proof for claiming exemption under a notification, the Tribunal referred to a Supreme Court judgment stating that the party claiming exemption bears the burden of proving eligibility. The Collector (Appeals) had considered all relevant facts and test reports before concluding that the cartons did not qualify for exemption. Therefore, the Tribunal dismissed the appeal, upholding the decision of the Collector (Appeals) regarding the classification and eligibility for duty exemption of the printed cartons.