Accrued exemption under valid CT-3 certificates could not be defeated by a later approval condition.

Exemption under Notification No. 1/95-C.E. for fuel procured by an EOU against valid CT-3 certificates was considered alongside Notification No. 31/98-C.E., which introduced a Commissioner of Customs approval requirement. The analysis states that entitlement had already accrued under the valid CT-3 certificates issued by a competent authority, and that a later-added condition could not defeat that accrued benefit. It also notes that the amended entry referred to approval and did not necessarily require prior approval, while the record contained no finding that the fuel use otherwise violated the notification. On that basis, the exemption was not to be denied on the amended condition.

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Issues: Whether exemption under Notification No. 1/95-C.E. could be denied to an EOU for fuel procured against a valid CT-3 certificate on the ground that Notification No. 31/98-C.E. introduced a requirement of approval by the Commissioner of Customs.

Analysis: The supplies had been obtained against CT-3 certificates issued by a competent authority, and the amendment merely added a new entry requiring approval. The earlier entitlement already accrued under the valid CT-3 certificates could not be defeated by imposing an additional condition introduced later. The text of the amended entry referred to approval, not necessarily prior approval, and the record contained no finding that the fuel use was otherwise contrary to the notification.

Conclusion: The exemption could not be denied on the amended condition, and the Revenue's challenge failed.

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