Exemption claims needing factual verification cannot be raised for the first time on appeal, and duty demand was confirmed.

An exemption claim requiring factual verification cannot be raised for the first time in appeal unless it was shown to have been advanced before the adjudicating authority. The appellants failed to establish that the small-scale exemption notifications and Notification No. 115/75 had been claimed below, so the appellate forum declined to entertain them. With no other merit found in the challenge, the duty demand on mother rolls was confirmed and the appeal was rejected.

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Issues: Whether the appellants could be permitted to raise exemption claims under the relevant notifications for the first time at the appellate stage and whether the demand of duty on mother rolls was sustainable.

Analysis: The record showed that the appellants had not established that the exemption claims under the small-scale exemption notifications and Notification No. 115/75 had been taken before the adjudicating authority. As these claims required factual inquiry, they could not be entertained for the first time in appeal. Apart from these belated exemption claims, no other merit was found in the challenge to the duty demand.

Conclusion: The challenge failed, and the demand of duty was upheld.

Final Conclusion: The appeal was rejected and the duty demand confirmed.

Ratio Decidendi: An exemption claim requiring factual verification cannot be entertained for the first time in appeal unless it was shown to have been raised before the adjudicating authority.

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