Strict compliance with conditional customs exemption required; concessional CVD denied where purchase source and end-use conditions were unmet.

Conditional customs exemption was held to require strict compliance with the notification terms, including purchase from the manufacturer and satisfaction of the prescribed end-use conditions. The importer's admitted procurement through high sea sale from a non-manufacturer, and use of the cement for hollow brick manufacture and local sale, were inconsistent with the concessional CVD scheme under Notification No. 4/2006-CE. Mere assessment and clearance at the import stage did not validate a claim contrary to the notification. The Tribunal's interference was found unsustainable, and the departmental demand with consequential reliefs was upheld.

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Issues: Whether the importer was entitled to concessional countervailing duty under Notification No. 4/2006-CE despite importing cement through high sea sale, failing to purchase directly from the manufacturer, and not satisfying the prescribed institutional or industrial use conditions.

Analysis: The concessional scheme under the notification was held to be conditional and not automatic. The relevant conditions required direct purchase from the manufacturer and compliance with the specified end-use or industrial-institutional requirements. The importer admitted that the cement was purchased through high sea sale from a non-manufacturer and that it was used for manufacturing hollow bricks and sold in the local market. On those admitted facts, the claimed concession was inconsistent with the notification conditions. The Court also held that mere filing of bills of entry or clearance by customs officials did not validate a claim contrary to the notification, and the CESTAT had overlooked the material admissions and the terms of the exemption.

Conclusion: The importer was not entitled to concessional CVD, and the departmental demand and consequential reliefs were upheld.

Final Conclusion: The appeal succeeded because the exemption conditions were breached and the Tribunal's interference with the adjudication order was found unsustainable.

Ratio Decidendi: A conditional customs exemption must be strictly satisfied, and where the importer admits facts showing non-compliance with the prescribed source of purchase and end-use conditions, concessional duty cannot be allowed merely because the goods were assessed and cleared at import stage.

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