Amended exemption notification applied to pre-cutoff stock of hot re-rolled products, with no proof of condition breach.

The amended exemption notification was treated as applicable to hot re-rolled products produced before 1-9-1997 and lying in stock on 31-8-1997. The notification also revised the nominal centre distance condition, and the record contained no material showing breach of the prescribed limit. As the Revenue did not rebut the appellate finding on that point, the lower duty rate under Serial No. 3 was applied. On those facts, the duty demand and penalty did not survive, and the Revenue's appeal failed.

---

---

Issues: Applicability of Notification No. 50/97-C.E., as amended by Notification No. 57/97-C.E., to hot re-rolled products lying in stock on 31-8-1997 when the compounded levy scheme was introduced.

Analysis: The stock related to goods produced before 1-9-1997. The amended notification extended the benefit of Notification No. 50/97-C.E. to products produced prior to 1-9-1997 and altered the relevant nominal centre distance criterion. On the record, there was no material showing that the nominal centre distance exceeded the prescribed limit, and the Revenue did not controvert the finding recorded by the appellate authority. In these circumstances, the lower duty rate under Serial No. 3 was rightly applied.

Conclusion: The issue is decided in favour of the assessee and against the Revenue.

Final Conclusion: The duty demand and penalty did not survive on the facts found, and the Revenue's appeal failed.

Ratio Decidendi: Where the amended exemption notification applies to goods produced before the relevant cut-off date and there is no evidence that the applicable product specification condition is breached, the benefit under the appropriate serial entry must be allowed.

---