Exemption under Customs notification sustained where unrebutted documents proved non-availment of Modvat credit.

An importer's entitlement to exemption under Notification No. 203/92-Cus. depended on compliance with the Modvat credit condition. The first appellate authority accepted documentary proof, including a chartered accountant's certificate and an original certificate from the Superintendent of Central Excise, showing that no Modvat credit had been availed in respect of the imported goods. As the Revenue did not rebut that evidence, and verification had been left open, the Tribunal found no basis to disturb the accepted finding of compliance. The exemption was therefore sustained and the Revenue's challenge failed.

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Issues: Whether the importer was entitled to exemption under Notification No. 203/92-Cus. despite the objection that proof of non-availment or reversal of Modvat credit had not been produced.

Analysis: The first appellate authority accepted the assessee's claim on the basis of a chartered accountant's certificate stating that no Modvat credit had been availed in respect of the imported goods, along with the original certificate issued by the Superintendent of Central Excise. The Revenue did not controvert these materials in the appeal. The Tribunal held that where the evidentiary basis relied upon by the first appellate authority remained unrebutted, and the authority had also kept open verification of the certificate, no surviving ground remained to disturb the finding that the condition for exemption stood satisfied.

Conclusion: The assessee was held entitled to the exemption, and the Revenue's challenge failed.

Ratio Decidendi: An exemption cannot be denied on the allegation of non-fulfilment of a credit-related condition when the assessee's documentary evidence supporting compliance is unrebutted and has been accepted by the appellate authority.

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