Corrugated Boxes and Laminated Paper are Eligible for Excise duty Exemption Under Exemption Notification: CESTAT [Read Order]

The Allahabad bench of the Customs Excise and Service Tax Appellate Tribunal (CESTAT) held that the corrugated boxes and laminated paper are eligible for the excise duty exemption under exemption notification. 

Well-Tech Packaging, the appellant assessee was engaged in the manufacture of Corrugated Boxes and Laminated Paper falling under Chapter 48 of the First Schedule to Central Excise Tariff Act, 1985 at Rudrapur Uttarakhand and claimed for the excise duty exemption under the exemption notification. 

The assessee appealed against the order passed by the Commissioner (Appeal), Custom & Central Excise Meerut for confirming the excise duty demand of Rs 30,78,288/- recovered from the assessee under Section 11A of the Central Excise Act, 1944 and for the imposition of penalty. 

Atul Gupta and Prakhar Shukla, the counsels for the assessee contended that the assessee was eligible for benefit under area-based exemption notification as no show cause had been issued to them to deny the benefit of Notification No 8/2003-CE. 

Sandeep Pandey, the counsel for the department contended that the assessee had claimed the exemption under Notification 50/2003-CE by classifying their product which falls in the specified negative list of the goods not covered by the said notification. 

The Bench observed that the goods of laminated paper and corrugated boxes are eligible for the area-based exemption under the exemption notification and the assessee was eligible for the exemption. 

The two-member bench comprising P K Choudhary (Judicial) and Sanjiv Srivastava (Technical) held that the goods are correctly classified by the assessee and the benefit of exemption under Notification will be admissible to the assessee. 

To Read the full text of the Order CLICK HERE

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