Comm.Of Central Excise, Allahabad vs M/S Ginni Filaments Ltd

The Supreme Court addressed the eligibility for exemption under Notification No. 123/81-CE, emphasizing that the phrase 'in connection with the manufacture' should be interpreted broadly to favor export-oriented units. The Court held that the assessee's use of goods, even if not directly utilized in the manufacture of cotton yarn, satisfied the conditions of the notification. Consequently, the demand for excise duty was set aside, affirming the Tribunal's decision to grant the exemption.