Substantive exemption conditions prevail over circular-based procedure; abatement could not be denied where the core eligibility condition was met.

Abatement under Notification No. 32/2004-ST could not be denied merely because certificates, declarations and endorsement particulars required only by a Board circular were not furnished on individual consignment notes. The substantive notification condition was that the Goods Transport Agency had not availed credit of duty on inputs or capital goods, and that condition was satisfied; certificates were produced and there was no allegation of inadmissible credit. Procedural requirements introduced by circular could not override the notification and defeat the benefit. The denial of the abatement was therefore unsustainable and the assessee succeeded.

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Issues: Whether abatement under Notification No. 32/2004-ST could be denied for want of the certificate and declaration requirements prescribed only by the Board circular.

Analysis: The notification allowed abatement on the condition that the Goods Transport Agency had not availed credit of duty on inputs or capital goods. The denial rested not on breach of that substantive condition but on the absence of certificates, declarations, and endorsement particulars on individual consignment notes, requirements introduced by the Board circular. The Tribunal held that such procedural conditions, not found in the notification itself, could not be elevated into mandatory requirements so as to defeat the benefit, particularly when certificates were in fact produced and there was no case that the transport agency had availed inadmissible credit.

Conclusion: Denial of the 75% abatement was unsustainable and the issue was decided in favour of the assessee.

Final Conclusion: The impugned orders were set aside and the appeals were allowed with consequential relief.

Ratio Decidendi: A procedural condition introduced by circular cannot override the substantive eligibility conditions of a notification, and exemption or abatement cannot be denied when the essential condition is otherwise satisfied.

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