TMI Blog2011 (4) TMI 1057X X X X Extracts X X X X X X X X Extracts X X X X ..... “essence” of the requirements under Chapter X. Indisputedly, those requirements had not been complied with, appeal dismissed - E/1463/2005 - 384/2011-EX(PB), - Dated:- 7-4-2011 - Justice R.M.S. Khandeparkar, Shri Rakesh Kumar, JJ. Shri T.R. Rustagi, Advocate, for the Appellant. S/Shri B.R. Tripathi and B.K. Singh, Jt. CDRs, for the Respondent. [Order per : Justice R.M.S. Khandeparkar, President (Oral)]. Heard. 2. The appellants are engaged in manufacture of product called Kimam or compound. The appellants purchased raw kimam and mixed the same with perfumes, fragrances plus small quantities of spices for taste. The product so obtained was transferred to three other factories of the appellants. The compound was mixed w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the matter of Commissioner of C. Ex., New Delhi v. Hari Chand Shri Gopal reported in 2010 (260) E.L.T. 3 (S.C.), it was answered thus :- 21. Rule 196 provides for payment of duty by the recipient if the goods obtained under Rule 192 are not accounted for or used in the manner prescribed under these rules. Similarly, Rule 196A stipulates that surplus goods so received under Rule 192 can be cleared on payment of duty. Rule 196AA provides for transfer of such goods received under Rule 192 to another manufacturer who has been granted registration under Rule 192 with the prior approval of the proper officer. Rule 196B provides for the manner in which goods received under Rule 192 may be disposed of if found defective or damaged, they can be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstruction 22. The law is well settled that a person who claims exemption or concession has to establish that he is entitled to that exemption or concession. A provision providing for an exemption, concession or exception, as the case may be, has to be construed strictly with certain exceptions depending upon the settings on which the provision has been placed in the Statute and the object and purpose to be achieved. If exemption is available on complying with certain conditions, the conditions have to be complied with. The mandatory requirements of those conditions must be obeyed or fulfilled exactly, though at times, some latitude can be shown, if there is a failure to comply with some requirements which are directory in nature, the non ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n to an exemption notification is given strict meaning where for the notification has to be interpreted in terms of its language, once an assessee satisfies the eligibility clause, the exemption clause therein may be construed literally. An eligibility criteria, therefore, deserves a strict construction, although construction of a condition thereof may be given a liberal meaning if the same is directory in nature. Doctrine of substantial compliance and intended use : 24. The doctrine of substantial compliance is a judicial invention, equitable in nature, designed to avoid hardship in cases where a party does all that can reasonably expected of it, but failed or faulted in some minor or inconsequent aspects which cannot be described as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een substantially complied with notwithstanding the non-compliance of directory requirements. In cases where substantial compliance has been found, there has been actual compliance with the statute, albeit procedurally faulty. The doctrine of substantial compliance seeks to preserve the need to comply strictly with the conditions or requirements that are important to invoke a tax or duty exemption and to forgive non-compliance for either unimportant and tangential requirements or requirements that are so confusingly or incorrectly written that an earnest effort at compliance should be accepted. The test for determining the applicability of the substantial compliance doctrine has been the subject of a myriad of cases and quite often, the cri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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