Notification 1/93-CE benefit cannot be denied for home clearances merely because earlier duty-paid exports were made to Nepal.

Prior duty-paid clearances to Nepal did not bar later clearances for home consumption from availing Notification No. 1/93-CE, because the earlier export-related removals were not sufficient to attract the notification's restriction. Following its earlier ruling on the same point, the Tribunal held that exemption could not be denied merely on the basis of the assessee's clearance history to Nepal during the same financial year. The assessee was therefore entitled to the notification benefit, and the denial of exemption was unsustainable.

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Issues: Whether the benefit of Notification No. 1/93-CE could be denied for subsequent clearances for home consumption on the ground that the assessee had earlier made clearances to Nepal on payment of duty during the same financial year.

Analysis: The Tribunal followed its earlier decision on the same point and held that prior duty-paid clearances to Nepal did not disentitle the assessee from claiming the notification benefit for later clearances for home consumption. The denial was based solely on the export-clearance history, which had already been held insufficient to attract the bar in the notification.

Conclusion: The assessee was entitled to the benefit of Notification No. 1/93-CE and the denial of exemption was unsustainable.

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