Finality of unchallenged exemption order upheld, preventing the Revenue from reviving a duty demand in later proceedings.

An unchallenged appellate order allowing exemption under Notification No. 49/87-C.E. attained finality and bound the subsequent adjudication. Because the Revenue did not contest the earlier Order-in-Appeal, the grant of exemption could not be reopened in later proceedings. The adjudicating authority therefore correctly dropped the duty demand in conformity with that final appellate determination, and no infirmity was found in the order.

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Issues: Whether the Revenue's challenge to the dropping of duty demand could succeed when the earlier appellate order granting exemption under Notification No. 49/87-C.E. had not been challenged and had attained finality.

Analysis: The adjudicating authority dropped the demand in consequence of the earlier Order-in-Appeal by which the benefit of the exemption notification had been allowed to the assessee. Since that appellate order was never challenged by the Revenue, the grant of exemption had become final and was binding in the subsequent adjudication. The impugned order merely followed that final appellate determination, leaving no infirmity in the order dropping demand.

Conclusion: The challenge failed and the order dropping the demand was upheld.

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