Substantial compliance with exemption notification upheld, so refund could not be denied for procedural lapse or lack of separate claim.

A beneficial exemption notification was held to be satisfied by substantial compliance where the eligible unit established entitlement and furnished duty-paid statements in RT-12 returns. The notification did not require a separate refund application as a condition precedent, so refund could not be denied merely because no separate claim was filed. Procedural delay or non-compliance was also insufficient to defeat the substantive refund right once eligibility was shown. The Tribunal therefore set aside the impugned order and granted refund relief to the assessees.

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Issues: Whether refund under the exemption notification could be denied as time-barred or for want of a separate refund claim, and whether submission of duty-paid statements in the prescribed returns amounted to compliance with the notification.

Analysis: The exemption scheme required the eligible unit to establish entitlement and then furnish monthly statements of duty paid. The notification did not insist on a separate refund application as a condition precedent. The Tribunal followed binding precedent holding that filing of duty-paid statements in RT-12 returns constituted substantial compliance with the notification. Once eligibility for exemption was established, denial of refund merely on the ground of delay or procedural non-compliance would defeat the beneficial object of the notification.

Conclusion: The refund could not be denied on limitation or procedural grounds, and the appellants were entitled to the benefit of the notification.

Final Conclusion: The impugned order was set aside and the appeals were allowed, with refund relief granted to the assessees.

Ratio Decidendi: Where a beneficial exemption notification is substantially complied with, a procedural lapse such as omission to file a separate refund claim cannot defeat the substantive right to refund once eligibility is otherwise established.

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