Notification 203/92-Cus benefit cannot be denied to a VABAL purchaser for lack of proof of non-availment of input credit.

A purchaser of VABAL was not required to prove that the manufacturer of the exported goods had not availed input stage credit in order to claim benefit under Notification No. 203/92-Cus. Applying the controlling Supreme Court position on the notification, the tribunal held that this non-availment requirement could not be imposed on the purchaser. The denial of notification benefit was therefore unsustainable, and the impugned order was set aside in favour of the assessee.

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Issues: Whether the purchaser of VABAL was required to prove that input stage credit had not been availed by the manufacturer of the exported goods to claim the benefit of Notification No. 203/92-Cus.

Analysis: The appeal turned on the effect of the Supreme Court decision on Notification No. 203/92-Cus. The controlling legal position was that a purchaser of VABAL is not required to establish non-availment of input stage credit by the manufacturer for availing the notification benefit. Once that position governed the dispute, the demand could not be sustained.

Conclusion: The issue was decided in favour of the assessee. The denial of benefit under Notification No. 203/92-Cus was unsustainable and the impugned order was set aside.

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