Duty-free input notification benefit survives further processing and export, with full waiver of pre-deposit granted.

Duty-free indigenous inputs procured under Notification No. 43/2001-C.E. (N.T.) remained eligible for the notification benefit where the final products were cleared to another unit for further processing and export. The Tribunal relied on prior decisions and treated the subsequent inter-unit processing and export as not defeating the notification, holding that the circumstances did not amount to violation of its conditions. On that basis, full waiver of pre-deposit was granted and recovery was stayed pending disposal of the appeal.

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Issues: Whether full waiver of pre-deposit was warranted where duty-free indigenous inputs were procured under Notification No. 43/2001-C.E. (N.T.) and the final products were exported after further processing by another unit.

Analysis: The Tribunal noted that the inputs were procured duty free for manufacture of final products under the notification and that the goods were cleared to another unit within the country for further processing and export. Relying on earlier decisions, it held that such subsequent processing and export of the final products did not defeat the benefit of the notification, and that the notification was not violated in the circumstances presented.

Conclusion: Full waiver of pre-deposit was granted and recovery was stayed until disposal of the appeal.

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