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TMI Blog2007 (8) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... ner of Central Excise (Appeals), Chennai. In the impugned order, the Commissioner affirmed the demand of differential duty of Rs. 3,45,000/- being the amount of exemption availed by the appellants for clearances of caustic soda in terms of Notification No. 5/98- C.E. dated 2-6-98, during the period 14-9-98 to 17-11-98. The appellants had cleared 480 MTs of caustic soda to M/s. Jupiter Dyechem Pvt. Ltd., for supply to M/s. Oil and Natural Gas Corporation to be used in connection with oil exploration. As per the Notification No. 2/98, specified goods supplied to ONGC were eligible for concessional effective rate of 10% ad valorem subject to the following conditions : 4. "Where such use is elsewhere than in the factory of production, the proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods had been used in oil exploration by ONGC. The ld. Counsel cited a judgment of the Apex Court in Mangalore Chemicals & Fertilizers Ltd. v. Deputy Commissioner reported in 1991 (55) E.L.T. 437 (S.C), to support the claim of the appellants that once the substantive conditions of the notification were fulfilled, the exemption extended m the notification should not be denied for failure of the assessee to fulfil procedural conditions. He invited our attention particularly to the following observations of the Apex Court; "There are conditions and conditions. Some may be substantive, mandatory and based on consideration pf policy and some others may merely belong to the area of procedure will be erroneous to attach equal importance to the no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regard at Sl. No. 55 are procedural measures to ensure that the goods are put to such use by ONGC or Oil (I) Ltd., as the case may be. Once the substantive condition for eligibility to the benefit is satisfied, the said benefit cannot be denied on the ground of failure to of the assessee fulfil procedural conditions. Such a literal construction of the notification will defeat the legislative intent behind the notification. In the circumstances, following the observations of the Apex Court in its judgment in the case of Mangalore Chemicals and Fertilizers Ltd. cited (supra), we find that the assessee had paid the concessional rate of duty on the goods at the time of their clearance correctly. There is no need to recover the benefit legitimat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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