Conditional excise exemption cannot be extended to imported fabrics for countervailing duty computation

A conditional Central Excise exemption notification framed for goods manufactured in India cannot be extended to imported goods when its conditions depend on domestic manufacturing processes and factory facilities. For countervailing duty computation, imported fabrics therefore could not satisfy the notification's operative conditions in the same manner as Indian-made goods, and the benefit was denied. The Tribunal followed the Revenue's earlier-supported position and accepted the Revenue's objection.

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Issues: Whether the benefit of a conditional Central Excise exemption notification could be extended to imported fabrics for the purpose of computing countervailing duty.

Analysis: A conditional Central Excise notification is framed for goods manufactured in India and its conditions are meant to be satisfied in the context of domestic manufacture. Where the goods are imported, the statutory conditions linked to manufacturing processes and factory facilities cannot be fulfilled in the same manner. The Tribunal followed the earlier decision relied on by the Revenue and held that imported goods cannot claim the benefit of such a notification for arriving at countervailing duty.

Conclusion: The benefit of the notification was not available to the imported goods, and the Revenue's objection was accepted.

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