Concessional duty eligibility requires reliable documentary proof of indigenous inputs and factual compliance before exemption can be granted.

Eligibility for concessional duty under Notification No. 23/2003-C.E. depended on factual proof that raw materials were indigenous, the blended yarn composition was correctly established, and the DTA clearances complied with the relevant EXIM Policy conditions. The available records did not reliably prove exclusive use of indigenous inputs, and a Chartered Accountant's certificate alone was insufficient without supporting documentary evidence maintained by the assessee. As these factual requirements had not been properly verified, and the matter had earlier been remanded, de novo examination by the adjudicating authority was necessary, with liberty to the assessee to produce evidence and the issues kept open.

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Issues: Whether the demand and denial of concessional duty under Notification No. 23/2003-C.E. required fresh examination in view of the dispute on indigenous procurement of raw materials, composition of blended yarn, and compliance with the conditions for DTA clearance.

Analysis: The eligibility to duty concession depended on factual verification of the source of raw materials and the nature of the goods cleared into DTA. The available statutory records were insufficient to establish that the yarn and waste were manufactured exclusively from indigenous inputs. The Chartered Accountant's certificate could not by itself establish entitlement to exemption, as the claim had to be supported by reliable documentary evidence maintained by the assessee. There was also no clear finding on the blend composition of the yarn or on whether the clearances satisfied the EXIM Policy conditions referred to in the notification. Since these factual issues had not been properly examined by the adjudicating authority, and the matter had already been remanded earlier, a fresh verification was necessary.

Conclusion: The matter was remanded to the adjudicating authority for de novo examination of the factual eligibility for concessional duty, with liberty to the assessee to adduce evidence; the issues were kept open.

Ratio Decidendi: A claim to exemption or concessional duty must be established by reliable documentary evidence and proper verification of the factual conditions governing eligibility; where such verification is incomplete, remand is warranted.

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