Exemption under Notification No. 6/2006-CE required re-quantification of duty on remand for bus body fabrication.

Exemption under Notification No. 6/2006-CE was treated as applicable to fabrication of bus bodies on chassis supplied for clearance to DMRC, so the existing duty determination could not stand. The duty liability was therefore required to be re-quantified after giving effect to the exemption, and the matter was remanded to the original adjudicating authority for fresh computation. The operative principle stated is that once an exemption notification applies to the disputed transaction, the duty demand must be reworked in accordance with that exemption.

---

---

Issues: Whether the appellant was entitled to the benefit of exemption under Notification No. 6/2006-CE and whether the duty liability required re-quantification by the original adjudicating authority.

Analysis: The matter was considered in the light of the directions of the higher courts, which had permitted the appellant to approach the Tribunal and had indicated that the appellant, engaged in fabrication of bus bodies on chassis supplied for clearance to DMRC, was entitled to similar exemption treatment. In view of that exemption becoming available for the transaction in dispute, the existing determination of duty could not be sustained without fresh quantification. The proper course was to send the matter back to the original adjudicating authority to recompute the duty liability after giving effect to the exemption.

Conclusion: The appellant was held entitled to consideration of exemption under Notification No. 6/2006-CE, and the duty liability was directed to be re-quantified on remand.

Final Conclusion: The appeal succeeded and the matter was restored to the adjudicating authority for fresh computation of duty after applying the available exemption.

Ratio Decidendi: Where an exemption notification is held applicable to the disputed transaction, the duty demand must be reworked on remand in accordance with that exemption.

---