Excise Exemption cannot be Entirely Denied When Packaging Materials are Partially Used for Traded Goods: CESTAT

In a ruling by CESTAT, excise exemptions were not entirely denied when packaging materials were partially used for traded goods. The bench clarified that if packaging materials are primarily used for manufacturing but also partially for traded goods, the exemption should apply proportionately. This judgment underscores the need for proportionality in the use of excise exemptions for packaging materials, ensuring that only the exempt portion of the materials used for manufacturing is considered for duty waiver.