Exemption eligibility may be raised on appeal, with single registration effective from application date and remand ordered.

Entitlement to exemption under Notification No. 67/95-CE could be examined for the first time before the Tribunal because eligibility to exemption is a question of law, and the absence of a specific earlier claim did not bar appellate consideration. The single registration for two units was treated as effective from the date of application, so the clearances could be considered on the basis of captive consumption within one factory. As the factual eligibility of the exemption and the inter-unit clearances had not been examined below, the matter was remanded for fresh adjudication on exemption eligibility and duty consequences.

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Issues: (i) whether the assessee could raise entitlement to exemption under Notification No. 67/95-CE for the first time before the Tribunal; (ii) whether the grant of single registration for the two units should take effect from the date of the application so as to treat the clearances as captive consumption within one factory.

Issue (i): whether the assessee could raise entitlement to exemption under Notification No. 67/95-CE for the first time before the Tribunal

Analysis: The claim was not specifically pressed before the lower authorities, but the eligibility to exemption is a question of law and can be examined at the appellate stage. The absence of an earlier specific claim did not bar consideration of the notification benefit before the Tribunal.

Conclusion: The issue was held to be open for examination before the Tribunal.

Issue (ii): whether the grant of single registration for the two units should take effect from the date of the application so as to treat the clearances as captive consumption within one factory

Analysis: The earlier dispute regarding single registration had already been carried up to the High Court, and the registration was ultimately directed to be granted. On that basis, effect was given to the registration from the date of the application. Since the exemption claim required factual examination of the clearances between the two units and had not been considered below, the matter required reconsideration by the original authority.

Conclusion: The single registration was treated as effective from 30/7/2001, and the exemption eligibility was remanded for fresh decision.

Final Conclusion: The appeal resulted in a remand for reconsideration of exemption eligibility and the duty consequences of inter-unit clearances, with the assessee obtaining a partial procedural relief.

Ratio Decidendi: An exemption claim involving a question of law may be raised at the appellate stage, and where the factual eligibility has not been examined below, remand is appropriate for fresh adjudication.

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