Strict compliance with exemption conditions governs eligibility where credit on inputs or capital goods was not proved.

Exemption under Notification No. 30/2004-C.E. was unavailable because the claimant did not prove compliance with the express condition that no credit had been taken on inputs or capital goods. The Tribunal distinguished authority on imported scrap under a different notification, noting that it lacked a similar condition and was therefore not applicable. The governing principle applied was that exemption notifications must be strictly complied with and the burden lies on the claimant to establish fulfilment of every stipulated condition. On that basis, denial of the exemption was upheld and the appeal was rejected.

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Issues: Whether the appellant was entitled to the benefit of Notification No. 30/2004-C.E. despite not establishing fulfilment of the notification's condition that the goods were not covered by credit taken on inputs or capital goods.

Analysis: The notification granted exemption subject to a specific condition that its benefit would not apply where credit of duty on inputs or capital goods had been taken. The reliance on the decision concerning imported scrap under a different notification was found inapplicable because that notification did not contain a similar condition. The authorities cited by the Revenue supported the principle that exemption cannot be granted when the stipulated conditions are not satisfied, and the claimant for exemption must demonstrate compliance with those conditions.

Conclusion: The appellant failed to establish fulfilment of the condition attached to the exemption notification and was therefore not entitled to the benefit claimed.

Final Conclusion: The denial of exemption was upheld and the appeal was rejected.

Ratio Decidendi: Exemption notifications must be strictly complied with, and their benefit is unavailable unless the claimant proves satisfaction of the express conditions attached to the exemption.

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