Converted paper exemption applies to printed glassine poly-laminated rolls after printing and slitting under the excise notification.

Printed glassine poly-laminated paper rolls were treated as converted paper for exemption under Notification No. 49/87-C.E. when the goods had undergone printing and slitting, and earlier decisions had recognised such processing as conversion for Chapter 48 purposes. The notification's treatment of market-purchased base paper as deemed duty-paid supported eligibility, and the disputed conditions relating to duty-paid base paper were not the issue. On the facts noted, the denial of exemption for want of evidence did not displace the converted character of the product, and the exemption was held available.

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Issues: Whether the printed glassine poly-laminated paper rolls were a converted type of paper eligible for exemption under Notification No. 49/87-C.E. dated 1-3-1987.

Analysis: The notification exempted converted types of paper and paper rolls falling under Chapter 48 of the Central Excise Tariff Act, 1985, subject to the prescribed conditions regarding the base paper. The explanation to the notification treated market-purchased base paper as having suffered appropriate duty, and the disputed conditions regarding duty-paid base paper were not in issue. The goods had been subjected to printing and slitting, and earlier decisions had recognised that such processing could amount to conversion for the purpose of the exemption notification. The Collector (Appeals) had denied the benefit only for want of evidence, without displacing the character of the product as converted paper.

Conclusion: The goods were held to be eligible for exemption under Notification No. 49/87-C.E. dated 1-3-1987, and the denial of exemption was set aside in favour of the assessee.

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