9911796707
TMI Blog1998 (11) TMI 254X X X X Extracts X X X X X X X X Extracts X X X X ..... e periods of June, 1990 and July, 1993, the appellants availed the money credit of Rs. 77,935.00 and 54,551.00 respectively, on Solvent Extracted Sun-Flower, in terms of the provisions of Notification No. 45/89-C.E. (N.T.), dated 11-10-1989. 4. In terms of the conditions of the said Notification, the appellants were required to produce a certificate from an Officer not below the rank of Deputy Director in the Directorate of Vanaspati, Vegetable Oils and Fats, in the Ministry of Food Civil Supplies of the Government of India to the effect that the said oil has been manufactured by the Solvent Extraction Method. Such Certificates are required to be produced by the appellants within a period of five months from the date of taking of credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of RG-23B were submitted. He also submitted that the Credit was taken on the quantities of oil subjected to hydrogenation for vanaspati and not on the total oil received by them and the same was taken at the notified rate. It was the contention of Shri Chakraborty that the entire purpose of the Money Credit Scheme is to allow rebate on use of minor oils in the manufacture of vanaspati. The Condition No. (iv) of the notification requiring the manufacturer to produce a Certificate from the Directorate of Vanaspati, Vegetable Oils and Fats, is only a procedural condition aimed at establishing the fact that the oil in question has been manufactured by the supplier of the oil by Solvent Extraction Method. If such an establishment can be achieved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same. He also argued that it is the supplier of the oil who has to apply for the certificate to the Directorate of Vanaspati and the non-cooperative attitude of the supplier of the oil should not result in denial of otherwise available benefit to the appellants. 6. Countering the arguments, learned SDR submitted that the condition of the notification requiring the appellants to produce the certificates is not a procedural condition, but is a substantive one. It is well-settled, he argued that the Tribunal cannot relax the conditions of the notification which have to be strictly observed by the assessee claiming the benefit of the notification. As the appellants have not satisfied the conditions of the notification, irrespective of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India to the effect that the said Oil has been manufactured by the Solvent Extraction Method. The question which arises is as to whether this condition is a procedural or a substantive condition. The notification allows Money Credit in respect of Solvent Extracted Sun Flower Oil. The purpose behind the said condition is to establish that the Sun Flower Oil in respect of which Money Credit is being availed by the assessee, has been manufactured by the Solvent Extraction Method. For this purpose, the legislation, in its wisdom has placed the responsibility to certify the Solvent Extracted Character of the Oil on an Officer not below the rank of Deputy Director. As per the condition, even if a certificate is produced from an Officer below the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cals and Fertilizers Ltd. v. Deputy Commissioner - relied upon strongly by the learned Consultant, has drawn a line of distinction between a procedural condition of a technical nature and a substantive condition and have laid down that non-observance of the former is a condonable lapse. However, the question which arises in the instant cases is as to whether a condition as regards the production of certificate on the basis of which the availment of Money Credit is dependent, can be called a procedural condition. The intention, of course, behind the notification is to allow the manufacturers of vanaspati the benefit of Money Credit on use of specified minor oils and to encourage the use of such specified minor oils. But such a benefit can be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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