Export exemption under Notification 203/92-Cus sustained where non-availment of MODVAT credit was not disproved.

Exemption under Notification No. 203/92-Cus was upheld where the allegation of ineligible benefit rested only on assumption that CENVAT credit under Rule 57A had been availed on the exported goods. The AR4 forms contained a declaration of non-availment of MODVAT credit, and the jurisdictional officer had accepted those declarations at the time of export. As no documentary evidence was produced to rebut that factual position, the challenge to the exemption claim could not be sustained and the Revenue's appeal failed.

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Issues: Whether the respondent was ineligible for exemption under Notification No. 203/92-Cus on the ground that CENVAT credit under Rule 57A of the Central Excise Rules, 1944 had been availed in relation to the exported goods.

Analysis: The allegation in the show-cause notice was not supported by documentary evidence and rested on assumption and presumption. The AR4 forms carried a declaration that no MODVAT credit had been availed, and the jurisdictional officer had accepted those declarations at the time of export. No material was brought on record to contradict the factual finding of non-availment of credit. In the absence of contrary evidence, the Revenue's challenge to the exemption claim could not be sustained.

Conclusion: The respondent was entitled to the exemption, and the Revenue's appeal failed.

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