Exemption notification eligibility cannot be reopened in de novo proceedings when earlier denial has attained finality and remand was limited.

The exemption under Notification No. 14/92-C.E. could not be granted in de novo proceedings because the earlier order-in-appeal had already held that the notification conditions were not satisfied, and that finding had attained finality. The remand was limited to quantification of duty, so the adjudicating authority could not reopen the concluded question of eligibility to the exemption. By allowing the benefit again, the Commissioner (Appeals) acted beyond the scope of the remand and the impugned order was unsustainable on that point.

---

---

Issues: Whether the benefit of Notification No. 14/92-C.E. could be granted in de novo proceedings when the earlier order denying such benefit had attained finality and the remand was confined only to quantification of duty.

Analysis: The earlier order-in-appeal had already held that the conditions of the exemption notification were not satisfied and had remanded the matter only for quantification of duty. Since that finding denying the exemption was not challenged before the higher forum, it attained finality. In the subsequent proceedings, the adjudicating authority was therefore confined to quantification and could not reopen the concluded question of eligibility to the notification. The Commissioner (Appeals) in the impugned order exceeded the scope of the remand by again allowing the exemption.

Conclusion: The benefit of Notification No. 14/92-C.E. could not be granted in the impugned order, as the issue had already attained finality against the assessee.

---