Exemption for Toluene not denied for delayed licence endorsement where substantive notification conditions were otherwise satisfied.

Exemption under Notification No. 26/62 was treated as available for Toluene where the substance was used in paint manufacture and the recipient ultimately obtained the required L.6 endorsement for Toluol. The omission was regarded as immaterial by itself because the remaining notification conditions were satisfied and the Chapter X procedure had been followed to the destination authorities' satisfaction. The exemption was therefore not to be denied solely because the endorsement was obtained after clearance, and the revision application was allowed in favour of the assessee.

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Issues: Whether the exemption under Notification No. 26/62 could be denied for Toluene merely because the L.6 licence endorsement for Toluol was obtained subsequently, where the other conditions and Chapter X procedure were satisfied.

Analysis: The claim for exemption was examined on the footing that Toluene had been supplied for use in the manufacture of paints and that the recipient ultimately held the necessary endorsement, though not at the time of clearance. The decision accepted that the omission was not material by itself, provided the remaining conditions for the notification were met and the Chapter X procedure was followed to the satisfaction of the destination authorities. The approach taken was that the exemption should not be defeated by a mere subsequent endorsement where the substantive requirements stood fulfilled.

Conclusion: The exemption could not be denied on the ground of delayed endorsement alone, and the revision application was allowed in favour of the assessee.

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