Fly ash exemption under excise notification upheld where product met the stipulated content and records were duly maintained.

Exemption under Notification No. 60/91-C.E. depended on the factual satisfaction that the final product contained 25% or more fly ash and that the prescribed records were maintained. The notice alleged only that the product did not contain fly ash, and did not charge failure to maintain records. On the material considered, including the chemical examiner's report, maintained records, pilot experiment results and an IIT Kanpur expert report, the finding that the required records were kept was supported by evidence. The assessee therefore qualified for the exemption, and the Revenue's challenge failed.

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Issues: Whether the assessee was entitled to the benefit of the exemption notification for goods containing 25% or more fly ash, and whether the finding that the prescribed records were maintained called for interference.

Analysis: The exemption depended on satisfaction of the notification conditions, including the factual position that the final product contained the stipulated percentage of fly ash. The show cause notice proceeded only on the allegation that the final product did not contain fly ash, and did not allege failure to maintain prescribed records. The Commissioner's order had relied on the chemical examiner's report, the assessee's maintained record, pilot experiment results, and the report of an expert from IIT Kanpur. On the materials considered, the finding that the assessee maintained the prescribed record was supported by the record and no evidence was shown to dislodge that conclusion.

Conclusion: The assessee was entitled to the exemption under Notification No. 60/91-C.E., and the Revenue's challenge failed.

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