Exemption notification denial cannot support a duty demand once the underlying refusal order is set aside.

Denial of exemption under Notification No. 01/2010-CE could not sustain the duty demand once the earlier appellate order refusing that benefit had been set aside. With the basis for treating the appellant as ineligible no longer in force, the proceedings founded entirely on that denial also failed. The appellant was therefore entitled to the exemption benefit, and the related duty demand was unsustainable.

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Issues: Whether the appellant was entitled to the benefit of the exemption notification, and whether the duty demand raised on denial of that benefit could survive.

Analysis: The demand of duty arose solely from denial of the exemption under Notification No. 01/2010-CE. The earlier appellate order denying the benefit had already been set aside by the Tribunal. Once that order was no longer in force, the basis for treating the appellant as ineligible for the exemption disappeared, and the proceedings founded on such denial could not be sustained.

Conclusion: The appellant was entitled to the exemption benefit, and the duty demand based on its denial was unsustainable.

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