Duty-paid cotton yarn established on remand; documentary evidence and departmental material supported allowance of the claimed benefit.

In remand proceedings concerning eligibility for the claimed benefit, the assessee was required to prove that the cotton yarn used was duty paid. The Commissioner examined invoices, D-3 declarations and departmental material, and recorded a factual finding that the disputed yarn was duty paid. Reliance was also placed on the procurement pattern after filing the de-bonding application and on the department's own version in the show cause notice. The revenue's objection that no further enquiry was made was rejected because the remand direction had been complied with and the relevant evidence was considered. The order allowing the benefit and rejecting the balance duty demand was found to suffer from no infirmity.

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Issues: Whether, in the remand proceedings, the assessee had established that the cotton yarn used was duty paid so as to sustain the order allowing the benefit claimed and rejecting the balance duty demand.

Analysis: The matter had earlier been remanded to enable the assessee to produce documentary evidence on the question whether the yarn was duty paid. In the remand proceedings, the Commissioner examined the invoices, D-3 declarations and the departmental material, and recorded a finding that the cotton yarn in dispute was duty paid. The Commissioner also relied on the assessee's procurement pattern after filing the de-bonding application and on the department's own version in the show cause notice. The revenue's objection that no further enquiry was made was not accepted, since the remand direction had been complied with and the evidentiary material was duly considered.

Conclusion: The assessee successfully proved that the disputed cotton yarn was duty paid, and the Commissioner's order did not suffer from any infirmity.

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