Exemption notification without end-use condition cannot be denied by implying an unstated proof requirement.

An exemption under Notification No. 5/99-C.E. for goods classified under sub-heading 1703.90 could not be denied where the relevant entry did not prescribe any end-use condition or require proof of actual use. The notification itself showed that, when the Central Government intended a condition, it expressly stated it; no such requirement existed for the entry covering goods used in the manufacture of products other than alcohol. In that situation, the burden remained on the Revenue to prove by evidence that the cleared goods were in fact used in the manufacture of alcohol. As no such evidence was produced, the exemption was held available and the denial of benefit could not be sustained.

---

---

Issues: Whether the benefit of exemption under Notification No. 5/99-C.E. was available to goods falling under sub-heading 1703.90 when no condition requiring proof of end use was prescribed.

Analysis: Notification No. 5/99-C.E. granted exemption to the specified goods and, where the Central Government intended a condition, the notification expressly set out such a requirement in the relevant column. For the entry covering goods for use in the manufacture of goods other than alcohol, no condition was prescribed requiring the manufacturer to furnish proof or a certificate regarding actual end use. In the absence of such a condition, the exemption could not be denied by shifting the burden onto the manufacturer. If the Revenue sought to deny the benefit, it had to establish by evidence that the cleared goods were used in the manufacture of alcohol. No such evidence was produced. The view was consistent with the earlier tribunal decision on the same assessee.

Conclusion: The exemption was available to the assessee, and the department failed to disprove entitlement to the notification benefit.

Final Conclusion: The impugned order was set aside and the appeal succeeded on the exemption issue.

Ratio Decidendi: Where an exemption notification prescribes no end-use condition or proof requirement for a particular entry, the exemption cannot be denied on the basis of an unstated condition, and the burden lies on the Revenue to prove facts justifying denial of the exemption.

---