DTA sale of by-product permission: exemption could not be denied solely for absence of separate authorisation.

Concessional benefit under Notification No. 23/2003-CE could not be denied merely because the assessee had not obtained a separate permission for DTA sale of the by-product Hydrochloric Acid, where the letter of permission already covered that by-product and the governing circular did not require a separate authorisation. The exemption remained subject to compliance with the other notification and policy conditions, including the DTA ceiling and positive NFE requirement, which had to be verified by the adjudicating authority. The matter was therefore remanded for examination of those remaining conditions.

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Issues: Whether concessional benefit under Notification No. 23/2003-CE could be denied solely because the assessee had not obtained a separate specific permission for DTA sale of the by-product Hydrochloric Acid.

Analysis: The circular governing DTA sale of by-products provided that such sale could be made if it was permitted in the letter of permission or letter of intent, and a separate permission was not necessarily required. The letter of permission in the present case covered the by-product Hydrochloric Acid. The denial of exemption only on the ground of absence of a separate permission was therefore not justified. At the same time, the assessee was still required to satisfy the other conditions governing the notification and policy, including the DTA ceiling and achievement of positive NFE, which had to be verified by the adjudicating authority.

Conclusion: The benefit of Notification No. 23/2003-CE could not be denied merely for want of separate permission for DTA sale of the by-product, and the matter was remanded for verification of the remaining conditions.

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