TMI Blog2015 (1) TMI 1214X X X X Extracts X X X X X X X X Extracts X X X X ..... and the procedures so envisaged in terms of Notifications are mandatory requirements to claim the benefit of exemption. The object of such prerequisites is to ensure that the goods are not diverted or utilized for some other purposes under the guise of exemption. While referring to the compliance of such condition, the Hon’ble Supreme Court observed that test for determining applicability of substantial compliance doctrine is to examine the fact as to whether requirement relates to ‘substance’ or ‘essence’ of the Statute and if so, strict adherence to such requirements, is a precondition to give effect to the doctrine. By differentiating between the ‘mandatory’ and ‘directory’ condition of the Notification, it was observed that provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emand of ₹ 22.68 crores approximately for the period 2008-2012 by invoking the extended period. The other two demands of around ₹ 1.75 crores and ₹ 45 lakhs involved in the other two appeals are within the limitation period. Fourth appeal is against penalty imposed on the Director. 2. After hearing both sides, duly represented by Shri V.M. Doiphode, learned advocate for the appellants and Shri A.K. Nigam, A.R. for the Revenue, we find that the appellant is engaged in the manufacture of Populated Printed Circuit Boards (PPCBs). They were purchasing the raw material on their own and some of the raw material was being supplied by the customers and such PPCBs were being cleared by them on payment of duty. However, wherever, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of Notification No. 214/1986-CE as also of Notification No. 83/94- CE, the benefit of which was claimed only at the time of adjudication were not followed by the appellants. Accordingly, the lower authorities have held that the benefit of the Notification is not available to them and inasmuch as the appellant is the manufacturer of PPCBs in question, they are under legal obligation to pay duty of excise on the said goods so manufactured by them. Accordingly, demands raised against them stands confirmed along with imposition of penalties of identical amounts. 6. Learned advocate Shri V.M. Doiphode appearing for the appellants has drawn our attention to the fact that the supplier of the raw materials, for whom the PPCBs were manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal is as to whether the non-fulfillment of conditions of Notification No. 214/1986-CE as also of Notification No. 83/1994-CE dated 11.04.94 can be held to be a procedural violation so as to extend the benefit of the Notification to the appellant. Without referring to the earlier decisions of the Tribunal as also of some of the High Courts, which were partly in favour of the assessee and partly against them, we find that the Hon ble Supreme Court in a later case of CCE New Delhi Vs Hari Chand Shri Gopal [2010 (260) E.L.T.3(S.C.) has considered an identical situation. While holding that the benefit of Notification No. 121/1994, which prescribes a condition of following Chapter-x procedure for the purpose of claim of exemption, the Honble S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat such goods shall be used in or in relation to the manufacture of the final product in his factory and removed from his factory either on payment of duty or without payment of duty under bond for export or to units in free trade zone or to 100% EOUs etc. are the situations covered therein. He has also to produce evidence that the goods have been used or removed in the manner prescribed in the notification itself and the said supplier also undertaken the responsibility of discharging the liabilities in respect of central excise duty leviable on the final products. As such it is seen that the detailed conditions prescribed in Notification No. 214/86 are substantive conditions, which require fulfillment, so as to ensure that the goods manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
