Supplier Non-Response Doesn’t Invalidate Appellant’s Pulping Machine Ownership

Lion Paper Industries Vs C.C.E. & S.T. (CESTAT Ahmedabad)

Case Overview: The recent order by the CESTAT (Customs, Excise, and Service Tax Appellate Tribunal) Ahmedabad involves Lion Paper Industries and the Central Excise Department regarding the eligibility for exemption under Notification No. 04/2006-CE dated 01.03.2006 for Kraft Paper manufacturing. The primary contention from the Department was that Lion Paper Industries did not possess a pulping machine, disqualifying them from the claimed exemption.

Key Points from the CESTAT Order:

• Exemption Condition: The issue revolved around whether Lion Paper Industries qualified for the exemption, which requires that Kraft Paper be manufactured from the pulp stage.

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