Benefit of conditional exemption Notification cannot be denied on pretext of unconditionally exempted

Last updated: 15 April 2021

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The Tripura High Court has ruled that a company was entitled to the benefits of a conditional exemption notification for excise duties. The court upheld a previous decision, stating that the exemption was not unconditional and required specific investments to be made by the manufacturer. The Revenue Department's appeal, arguing that CENVAT credit should not be available on inputs for non-dutiable goods, was dismissed.

Court :
Tripura High Court

Brief :
The Hon'ble Tripura High Court in Union of India v. M/S. Dharampal Satyapal Ltd. [Central Excise Appeal No.01/2019 and Central Excise Appeal No.02/2019, dated March 22, 2021] upheld the judgment passed by the CESTAT, Kolkata allowing the assessee to avail the benefit of notification granting conditional exemption from the of the duties of excise/ other duties and dismissed the appeal filed by the Revenue Department. Held that, the exemption notification cannot be seen as a notification granting unconditional exemption from payment of duties.

Citation :
Central Excise Appeal No.01/2019 and Central Excise Appeal No.02/2019, dated March 22, 2021

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