Exemption notification benefit follows Revenue's classification, with refund adjusted against proforma credit already availed.

Imported Cimetidine Powder classified by the Revenue under Item 68 was treated as eligible for exemption from C.V.D. under Notification No. 234/82-C.E., because that classification brought the goods within the scope of the notification. The notification benefit could be entertained even though it was not originally claimed, as it flowed from the Revenue's own classification. The refund arising from the exemption was directed to be adjusted against proforma credit already availed under Rule 56A of the Central Excise Rules, 1944, and the bank guarantee and undertaking were to stand discharged after such adjustment.

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Issues: Whether the imported Cimetidine Powder, classified by the Revenue under Item 68, was entitled to the benefit of Notification No. 234/82-C.E. and the consequential refund relief, including adjustment against the proforma credit already availed.

Analysis: The Revenue's classification of the goods under Item 68 was not disputed in appeal. On that footing, the goods fell within the line of decisions holding that Cimetidine, as a bulk drug covered by the notification, was eligible for the exemption from C.V.D. under Notification No. 234/82-C.E. The plea for the notification benefit could be entertained because it flowed from the classification adopted by the Revenue. As the appellants had already availed proforma credit under Rule 56A of the Central Excise Rules, 1944, the refund arising from the present order was directed to be adjusted against that credit, with the bank guarantee and undertaking to stand discharged thereafter.

Conclusion: The exemption benefit was available and the appeal succeeded with consequential relief, subject to adjustment of the refund against the proforma credit already taken.

Ratio Decidendi: Where the Revenue's classification itself brings the goods within the scope of an exemption notification, the benefit of that notification may be granted even if not claimed earlier, and the resulting refund may be adjusted against proforma credit already availed.

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