Bagasse pulp exemption upheld where kraft paper met the 75% weight threshold on unrebutted production figures.

Kraft paper qualified for exemption under Notification No. 48/89-C.E. where the evidence showed that the paper contained not less than 75% bagasse pulp by weight. The Collector's calculation accepted allowances for moisture, additives and reel core weight, and on that basis found the bagasse pulp content exceeded the prescribed threshold during the relevant period. The Revenue did not rebut those figures or show that the allowance was incorrect. As the trade notice required the pulp content to be determined on the basis of pulp alone, the exemption was sustained on the unrebutted factual finding.

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Issues: Whether the respondent was entitled to exemption under Notification No. 48/89-C.E. on the basis that the kraft paper manufactured contained not less than 75% bagasse pulp by weight.

Analysis: The exemption under Notification No. 48/89-C.E. applied to kraft paper made from bagasse containing not less than 75% by weight. The Collector had examined the manufacturing figures, accepted an allowance towards moisture, additives and reel core weight, and found that the percentage of bagasse pulp in the total quantity of pulp used exceeded 75% during the relevant period. The Revenue did not dispute the figures relied upon by the Collector and produced no evidence to show that the allowance granted was incorrect or that the finding on bagasse content was unsustainable. As the trade notice required determination on the basis of pulp alone, the factual conclusion reached in the impugned order remained unrebutted.

Conclusion: The respondent was entitled to the benefit of the exemption notification, and the Revenue's challenge failed.

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