If set to TRUE, Smarty will respect the If-Modified-Since
  header sent from the client. If the cached file timestamp has
  not changed since the last visit, then a '304: Not Modified'
  header will be sent instead of the content. This works only on
  cached content without
  {insert}
  tags.
   See also
   $caching,
   $cache_lifetime,
   and the
   caching section.