CVD exemption under Notification No. 30/2004-CE upheld where no CENVAT credit on inputs was availed

A trader could still claim CVD exemption under Notification No. 30/2004-CE where the notification required only that CENVAT credit on inputs had not been availed. Since it was undisputed that no such credit was taken, the factual condition for exemption was satisfied, and trader status by itself did not defeat relief. The earlier interpretation of the same notification, as affirmed by the Supreme Court, governed the issue and supported the exemption.

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Issues: Whether the importer was entitled to CVD exemption under Notification No. 30/2004-CE dated 09.07.2004 despite being a trader and not having availed CENVAT credit on inputs.

Analysis: The condition in the notification is that the importer should not have availed CENVAT credit on the inputs. It was undisputed that no such credit had been availed by the respondent. The fact that the respondent was a trader, and therefore not in a position to avail such credit, did not defeat the exemption where the factual condition in the notification stood satisfied. The earlier view on the same notification and issue, as affirmed by the Supreme Court, governed the controversy.

Conclusion: The respondent was eligible for the CVD exemption, and the departmental challenge failed.

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