Duty set-off under gate pass procedure denied where inputs were received through Xerox copies and endorsed lorry receipts.

Duty set-off under Notification No. 201/79 was held unavailable where the inputs were received on Xerox copies of gate passes and endorsed lorry receipts, rather than under the original gate pass issued in favour of the claimant. The notification was construed as requiring receipt of inputs under cover of the relevant gate pass, and a gate pass was treated as valid only up to the first destination, so the benefit was confined to the first receipt from the manufacturer. The Tribunal also noted that the prescribed procedure for routed supplies through agents had not been followed, and the claim failed.

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Issues: Whether duty set-off under Notification No. 201/79 was admissible when the component parts were received on Xerox copies of gate passes and endorsed lorry receipts, and not under the original gate pass issued in favour of the appellant.

Analysis: The notification required receipt of the inputs under cover of the relevant gate pass. A gate pass issued by the manufacturer was treated as valid only up to the first destination, so the benefit of set-off was confined to the first receipt from the manufacturer. The Tribunal also noted that where goods are routed through agents, a separate prescribed procedure exists, and that procedure had not been followed. The reasoning adopted in an earlier Rule 56A matter was followed, while the Government of India order relied upon by the appellant was treated as persuasive only and insufficient to override the notification procedure.

Conclusion: The set-off was not admissible on the facts, and the claim failed.

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