COMMNR.OF CENT.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' allows for a broader interpretation. The Court held that the assessee, M/s Ginni Filaments Ltd., was entitled to the exemption as the goods were brought into the undertaking for the purpose of manufacturing combed cotton yarn, despite the department's claim of non-utilization. The appeal was allowed, confirming the Tribunal's interpretation of the notification's intent to support export-oriented units.