TMI Blog2023 (12) TMI 302X X X X Extracts X X X X X X X X Extracts X X X X ..... through third parties - the duty liability has been fastened on the importer solely on the ground that no evidence existed to indicate actual exports of corrugated boxes in which fruits/vegetables were claimed to have been shipped. The decision of the Tribunal in VADAPALANI PRESS VERSUS COMMISSIONER OF C. EX., CHENNAI [ 2007 (3) TMI 151 - CESTAT, CHENNAI] , which had been cited by the appellant before the original authority and neglected to be considered by him, was distinguishable on the ground that the correlation of the clearances from the factory and the exports had been established. The argument of the first appellate authority that the inability to determine, by use of records, that corrugated boxes supplied by the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) for the respondent ORDER PER : C J MATHEW The appellant, M/s Shree Hari Packing Industries Ltd is a manufacturer of corrugated boxes, cards rolls and sheets, and had been supplying the same to merchant exporters in the business of shipping of fruits/vegetables as packing. The appellant was operating under notification no. 8/2003-CE dated 1st March 2003 entitling small scale industrial (SSI) units to exemption on clearances up to limit which was to be computed after exclusion of non-excisable goods, exempted goods and exported goods. The clearances effected by the appellant between April 2008 and March 2010 came under scrutiny in view of the value of clearances of corrugated boxes amounting to ₹ 1,65,63,070. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CBEC's Excise Manual of Supplementary instructions 2005 deals with export by SSI units who remain under the exemption limit based on value of clearances for home consumption. When they themselves export the goods or export the goods through merchant exporter, then the value of such exports shall not be taken into account while arriving at the exemption limit of Rs. 150 Lakhs. In the instant case, the respondents sold the product card board boxes to their customer who in turn used those boxes for packing of fruits and vegetable, Here I observe that when the buyer of the respondents uses the card board boxes for packing of fruits and vegetable, the identity of the cardboard boxe is lost and what the buyer exporting is fruits and vegetabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actory and the exports had been established. 6. We find the argument of the first appellate authority that the inability to determine, by use of records, that corrugated boxes supplied by the appellant had in fact been part and parcel of the scheme of export consignment, to be specious. It is natural that fruits/vegetables are exported in suitable containers and it is the reality that the containers themselves are not to be found specifically enumerated in the shipping document. Nonetheless, it is established procedure, in terms of central excise law, to permit such containers to be cleared without payment of duty subject to establishing that the goods did ultimately find use by the merchant-exporter. The appellant herein had submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X
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