End-use certificate not required for concessional bulk drug exemption where goods otherwise satisfy the notification.

A concessional duty notification for bulk drugs could not be denied merely for absence of an end-use certificate where the notification did not make such certification a condition. Sorbitol 70% IP, supplied for use in manufacturing Vitamin-C, was treated as eligible for the concessional rate because it otherwise satisfied the notification's scope. The departmental objection based only on the certificate was rejected, and the exemption benefit was held admissible, with the demand and penalty not surviving.

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Issues: Whether benefit of Notification No. 31/88-C.E. could be denied for want of an end-use certificate and whether Sorbitol 70% IP cleared to be used in manufacture of Vitamin-C qualified for the concessional duty rate.

Analysis: Notification No. 31/88-C.E. granted a concessional rate to other bulk drugs falling under the specified chapters of the Tariff. The record showed that Sorbitol 70% IP was a bulk drug and that it was supplied for use in manufacture of Vitamin-C, which was also cleared as a bulk drug at the concessional rate. The Tribunal followed its earlier view that the notification did not prescribe production of an end-use certificate as a condition for availing the benefit, and therefore the departmental objection based solely on the certificate could not be sustained.

Conclusion: The benefit of the notification was admissible and the demand and penalty could not survive.

Final Conclusion: The appeal succeeded and the assessee obtained relief in accordance with law.

Ratio Decidendi: Where an exemption notification does not make end-use certification a condition, benefit cannot be denied merely because such a certificate is absent or considered vague, if the goods otherwise satisfy the notification.

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