Exemption for CT3-cleared fabrics cannot be denied absent proof of import or foreign origin under the notification.

Exemption under Notification No. 8/97 could not be denied merely because printed fabrics received under CT3 certificates from another 100% EOU were not separately shown as manufactured in India. The record showed no evidence that the fabrics were imported goods or had been brought from outside India as bonded goods under the Customs Act. As CT3 movement applies to excisable goods, the fabrics were treated as goods manufactured in India for notification purposes. The deemed export plea, supported by precedent, was accepted, and the exemption was allowed.

---

---

Issues: Whether the benefit of Notification No. 8/97 could be denied on the ground that the printed fabrics received under CT3 certificates from another 100% EOU were not shown to be manufactured in India.

Analysis: The record contained no material to show that the printed fabrics were imported goods or that they had been brought from outside India and moved as bonded goods under the Customs Act. The movement in question was under CT3 certificates, which are meant for excisable goods. In the absence of contrary evidence, the printed fabrics had to be treated as goods manufactured in India for the purpose of the notification. The plea based on deemed export, supported by the cited precedent, was accepted.

Conclusion: The denial of the notification benefit was not justified and the assessee was entitled to the exemption.

Ratio Decidendi: Where goods covered by CT3 certificates are not proved to be imported or otherwise outside the class of excisable goods manufactured in India, exemption under the relevant notification cannot be denied merely because the goods were received from another 100% EOU.

---