Duty-paid yarn exemption for cabled yarn upheld where the applicable notification criterion was satisfied.

Exemption under Notification No. 5/98 and Notification No. 5/99 was available only where the yarn used for cabled yarn was duty paid. The Tribunal held that the assessee satisfied that condition, and the impugned order was consistent with its earlier final order in the assessee's own case. A Revenue precedent was found inapplicable because it concerned a different exemption notification and a different qualifying criterion. The assessee was therefore entitled to the exemption benefit, and the Revenue's challenge failed.

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Issues: Whether the assessee was entitled to exemption under Notification No. 5/98 dated 02-06-1998 and Notification No. 5/99 dated 28-02-1999 when the cabled yarn was manufactured using both duty-paid lycra yarn and captively consumed textile yarn not cleared on payment of duty.

Analysis: The exemption was conditional upon the yarn used in the manufacture of cabled yarn being duty paid. The Tribunal noted that the impugned order had already been passed in conformity with its earlier final order in the assessee's own case. The precedent relied upon by the Revenue was held inapplicable because it dealt with a different exemption notification and a different criterion.

Conclusion: The assessee was entitled to the benefit of the exemption notifications, and the Revenue's challenge failed.

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