Supreme Court: Abatement of duty hinges on exemption entitlement. Tribunal decision upheld.

The Supreme Court of India held that the question of abatement of duty does not arise until it is established that the assessee was not entitled to exemption. The Tribunal's decision to remit the matter to the adjudicating authority was upheld, and the Department's civil appeals were disposed of with no order as to costs.

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The Supreme Court of India addressed the issue of exemption for an SSI unit and the entitlement to claim modvat credit and abatement. The Tribunal remitted the matter to the adjudicating authority, stating that the question of abatement of duty does not arise until it is determined that the assessee was not entitled to exemption. The Department's civil appeals were disposed of with no order as to costs.

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