Exemption notification compliance required fresh consideration where the assessee sought to prove eligibility through additional material.

Compliance with the conditions for exemption under Notification No. 32/2004-Service Tax was disputed, particularly non-availment of CENVAT credit and the supporting declarations in invoices. The assessee sought an opportunity to place additional material before the adjudicating authority to establish eligibility. The existing order was set aside and the matter was remitted for fresh consideration after granting a reasonable hearing, leaving the substantive entitlement to exemption open for reconsideration.

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Issues: Whether the assessee satisfied the conditions for availing the exemption under Notification No. 32/2004-Service Tax, and whether the matter required remand for fresh consideration.

Analysis: The dispute turned on compliance with the notification conditions relating to non-availment of CENVAT credit and the supporting declarations in the invoices. The assessee sought an opportunity to place further material before the adjudicating authority to establish compliance. In these circumstances, the existing order was set aside and the matter was sent back for reconsideration after granting a reasonable opportunity of hearing.

Conclusion: The issue was not finally decided on merits. The matter was remitted to the adjudicating authority for fresh decision on the assessee's eligibility to the exemption.

Final Conclusion: The appeal succeeded to the extent of remand, leaving the substantive entitlement to exemption open for fresh adjudication.

Ratio Decidendi: Where compliance with exemption notification conditions is disputed and additional opportunity is sought to prove fulfilment, the proper course is to remit the matter for fresh consideration after hearing the assessee.

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