Independent consideration of exemption claim under Notification No. 1/93-C.E. required, leading to remand for fresh adjudication.

An exemption claim under Notification No. 1/93-C.E. had to be examined independently of Notification No. 217/86-C.E., and the assessee's case was not to be rejected on that basis alone. The Tribunal noted that the goods were stated to fall under Heading 84.81 and to have been consumed as inputs within the factory for further manufacture, so the exemption issue required fresh adjudication after a reasonable opportunity of hearing. The impugned order was set aside and the matter remanded for de novo decision, with the issue decided in favour of the assessee.

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Issues: Whether the appellants' claim to exemption under Notification No. 1/93-C.E. required independent consideration and whether the matter should be remanded for fresh decision.

Analysis: The appellants clarified that they were not relying on Notification No. 217/86 but on Notification No. 1/93. The goods were stated to be classifiable under Heading 84.81 and to have been consumed as inputs within the factory for further manufacture. The Tribunal accepted that the claim under Notification No. 1/93 had to be examined independently of Notification No. 217/86, and that the matter required fresh adjudication after giving a reasonable opportunity of hearing.

Conclusion: The impugned order was set aside and the case was remanded for de novo decision; the issue was decided in favour of the assessee.

Final Conclusion: The appeal succeeded by way of remand for fresh consideration of the exemption claim.

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