Beneficial excise exemption cannot be denied for a trivial clerical mismatch when substantive notification conditions are otherwise met.

A beneficial excise exemption under Notification No. 16/2001-C.E. could not be denied merely because the quantity in the utilisation certificate differed marginally from the delivery challan. The certificate and delivery documents otherwise matched on consignments, lorry receipts and challans, and the small variation in decimal figures was treated as a clerical discrepancy rather than evidence that the goods were not received or used for the specified purpose. In the absence of contrary evidence, the substantive conditions of the notification were held satisfied and the exemption benefit was allowed.

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Issues: Whether the benefit of exemption under Notification No. 16/2001-C.E. dated 26-3-2001 could be denied merely because the quantity mentioned in the utilization certificate differed marginally from the quantity shown in the delivery challan, even though the remaining particulars matched and there was no evidence that the goods were not used for the specified purpose.

Analysis: The certificate and the delivery documents substantially tallied in respect of the consignments, lorry receipts, and delivery challans. The only discrepancy was a very small variation in the second and third decimal places of the quantity recorded. Such a variation was treated as an inadvertent clerical difference, not as proof that the goods had not been received or used in the earthquake-affected area. In the absence of any contrary evidence, a beneficial exemption could not be refused on the basis of a minor mismatch in quantity figures when the substantive conditions of the notification were otherwise satisfied.

Conclusion: The denial of exemption was unsustainable and the assessee was entitled to the notification benefit.

Final Conclusion: The appeal succeeded and the demand and penalty were set aside with consequential relief.

Ratio Decidendi: A beneficial exemption cannot be denied for a trivial clerical discrepancy in supporting documents when the substantive requirements of the notification are otherwise satisfied and there is no evidence of misuse of the goods.

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