TMI Blog1991 (7) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... Notification No. 333/88 dated 31-12-1988, as amended by Notification 11/89 dated 23-1-1989. The brief facts are that the appellants who are engaged in the exploration and exploitation of Mineral Oil and Natural Gas imported a consignment of Polyanionic Cellulosic Polymer equivalent to Drispac (Multicel P) which was cleared on 8-2-1989 on being assessed to duty under Heading 3912.90 Customs Tariff Act, 1975, read with Notification No. 88/77 and 157/88. The appellants filed a refund application subsequently amounting to Rs. 5,66,965.00 on the ground that the goods imported are covered by Exemption Notification No. 333/88 dated 31-12-1988, as amended by Notification 11/89 dated 23-1-1989. The Assistant Collector by his order dated 16-8-1989 re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for taking them on record. On the merits of the case Shri Chaudhary submitted that at the time of clearance the Essentiality Certificate although applied for had not been issued to them, the Ministry of Petroleum and Natural Gas, Government of India ultimately issued it on 13-3-1989 in terms of Notification No. 333/88, as amended by Notification No. 11/89 dated 23-1-1989. The item was specifically covered by Serial No. 11 of the Table to Notification 333/88. Therefore, the non-production of the Essentiality Certificate at the time of clearance was not deliberate but due to circumstances beyond their control and it should be accepted. It was further submitted that notification does not require importer to prove by evidence regarding the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is that the condition in the notification stipulating the production of the Essentiality Certificate at the time of clearance has not been fulfilled. However, it is seen from the evidence produced that in their letter dated 29-8-1988 to the Chief Consultant, Oil Industry Development Board, who is also the Member- Secretary, Empowered Committee, the appellants have informed about the placing of the order with the German supplier for the import of Polyanionic Cellulosic Polymer equivalent to Drispac (Multicel P) against Order No. 540021/RP dated 18-8-1988 requesting for the Essentiality Certificate in terms of the earlier Notification No. 515/86-Cus. and 516/86-Cus. both dated 30-12-1986, as amended for import of the material required for O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other use. Therefore, it can reasonably be held that there has been substantial compliance with the conditions in the notification. In this context the decision of the Supreme Court in the case of Union of India v. Wood Papers - 1990 (47) E.L.T. 500 (S.C.) is of importance and provides a suitable guide. The Supreme Court observed, Literally exemption is freedom from liability, tax or duty and in fact an exemption provision is like an exception and on normal principle of interpretation of statutes it is construed strictly either because of legislative intention or on economic justification of inequitable burden or progressive approach of fiscal provisions intended to augment state revenue. But once exception or exemption becomes applic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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