Duty liability and exemption notifications require prior examination before demand and penalty can be sustained; remand follows where omitted.

Where the liability of exported goods to central excise duty and the effect of exemption notifications had not been examined by the lower authorities, the matter required fresh consideration by the original authority. The document states that this duty-liability question was a preliminary and legally material issue because it directly affected the demand and penalty, and that an exemption notification must be treated as part of the enactment. It also notes that the claimant bears the burden of establishing entitlement. The appellate and original orders were therefore set aside and the dispute remanded for decision in accordance with law, leaving the substantive merits open.

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Issues: Whether the revision application should be remanded for fresh adjudication when the question whether the exported goods were liable to central excise duty and the effect of exemption notifications had not been examined by the lower authorities.

Analysis: The liability of the exported goods to central excise duty was raised as a preliminary issue. Since that question had neither been raised before nor decided by the lower authorities, and it had a direct bearing on the demand and penalty, the matter required consideration by the original authority. The decision also proceeded on the principle that the claimant bears the burden of establishing entitlement and that an exemption notification has to be treated as part of the enactment.

Conclusion: The matter was remanded and the appellate as well as original orders were set aside for decision in accordance with law.

Final Conclusion: The dispute was sent back for fresh determination on the duty liability and related reliefs, leaving the substantive merits open for reconsideration by the original authority.

Ratio Decidendi: Where a legally material issue affecting duty liability has not been examined by the lower authorities, the proper course is remand for fresh adjudication in accordance with law.

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