TMI Blog1997 (7) TMI 303X X X X Extracts X X X X X X X X Extracts X X X X ..... gul unit it manufactures Aluminium metal falling under Chapter 76 ibid out of calcined alumina manufactured at, and despatched from, Damanjodi. 2. During the material period 20-4-1989 to 24-7-1989, the appellant despatched calcined alumina without payment of duty following the Chapter X procedure of the Central Excise Rules, 1944 in terms of Notification No. 217/86 dated 3-4-1986 (as amended). Modvat credit of duty paid on inputs for manufacture of Alumina (which in turn was utilised in manufacture of aluminium metal cleared on payment of duty) was not debited. Instead, the Modvat credit earned at Damanjodi was utilised towards payment of duty on aluminium metal manufactured at Angul. Literally speaking, this meant transfer of Modvat cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of at Angul is avoided. This is the precise object of Notification No. 217/86. It is, therefore, prayed that if Revenue s contention is accepted that [calcined] alumina has been cleared without payment of duty under Notification 217/86-C.E. and, therefore, Modvat credit of duty paid on inputs used in [calcined] alumina needs to be reversed, then the appellant has no objection on paying duty on calcined alumina so that it can take credit again. In other words, the procedure followed by the appellant prior to or subsequent to the relevant period be allowed to be followed retrospectively (i.e. from 20-4-1989) since there is no loss of revenue and it is merely a matter of procedure. 7. He also submits that in the case of Bajaj Tempo Ltd. v. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n at Damanjodi of duty paid on inputs would be available for utilisation towards payment of duty on the final product (aluminium metal) at Angul because the two factories of the appellant - at Demanjodi and Angul - are to be treated as one. In the scheme of Notification 217/86-C.E., if for the purpose of consumption of intermediate inputs, both the factories are treated as one, they have to be treated as one for the purpose of utilisation of Modvat credit. If this is not allowed, the purpose of notification 217/86-C.E. will be defeated and it cannot be given effect in case like that of the appellants. It is well settled that procedural deviations shall not come in the way of availment of a substantive benefit. Procedures, in our opinion, sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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