1984 (12) TMI 311 - AT - Central Excise

Summary

Issues:
1. Refund claim filed under Central Excise Rules, 1944.
2. Compliance with Notification Nos. 162/63 and 163/63.
3. Interpretation of Chapter X Procedure.
4. Supply destination and usage of consignment.
5. Entitlement to exemption under Notification Nos. 162/63 and 163/63.

Analysis:
The appeal involved a refund claim filed by the appellants under the Central Excise Rules, 1944, concerning the clearance of L.D.O. consignment. The Assistant Collector rejected the claim citing non-compliance with Notification Nos. 162/63 and 163/63, emphasizing the necessity of following Chapter X Procedure. The Appellate Collector also dismissed the appeal on grounds of non-compliance with prescribed procedures.

The main issue for determination was whether the appellants adhered to the provisions of Notification Nos. 162/63 and 163/63. These notifications exempted L.D.O. consignments used for electricity generation in power stations from excise duties. The appellants argued that despite a technical breach of Chapter X Procedure, the conditions of the notifications were met as the consignment was delivered to the Bihar State Electricity Board and utilized for public electricity generation.

The department contended that the consignment was not directly supplied to the licensed entity as per Chapter X requirements, citing a Supreme Court decision emphasizing strict adherence to taxing statutes. The department argued that failure to follow Chapter X Procedure disqualified the appellants from claiming exemption under the notifications.

The Tribunal considered certifications from the Bihar Electricity Board and Central Excise authorities confirming the consignment's delivery and usage for electricity generation. Despite the procedural error in not preparing a GP-2 for duty-free movement, the Tribunal found the conditions of the notifications were met in substance. The Tribunal concluded that the rejection of the refund claim was unjustified, setting aside the lower authorities' orders and granting relief to the appellants in accordance with the exemption notifications.