Conditional exemption requires full compliance with all stipulated requirements; partial fulfilment does not support proportionate duty reduction.

Conditional exemption under the notification required fulfilment of both stipulated requirements, and partial compliance with only one condition did not justify any proportionate reduction in duty. In one appeal, neither the net foreign exchange as a percentage of export requirement nor export performance was met; in the other, export performance alone was not achieved. On that basis, the demand for proportionate relief was rejected and the confirmed duty demand and interest were upheld.

---

---

Issues: Whether the appellants were entitled to proportionate reduction of duty where only one of the exemption notification conditions had been fulfilled and the other condition remained unfulfilled.

Analysis: The benefit of the exemption notification was conditional upon satisfaction of both stipulated requirements. The finding was that, in one appeal, neither the net foreign exchange as a percentage of export requirement nor export performance was fulfilled, while in the other appeal export performance alone was not achieved. Since the notification required compliance with both conditions for exemption, partial fulfilment of only one condition did not justify a proportionate reduction of the duty confirmed.

Conclusion: The request for proportionate reduction of duty was rejected, and the duty demand and interest confirmed in the impugned order were upheld against the appellants.

---