Exemption notifications incorporate procedure only when they refer to it, not hidden substantive restrictions or no-credit conditions.

An exemption notification for synthetic organic dyestuffs manufactured from imported intermediates was construed as incorporating only the procedural mechanism of Rule 56A, because it referred solely to the "procedure set out in Rule 56A." The HC held that this wording did not import Rule 56A's substantive no-credit restrictions or the provisos to Rule 56A(2), which could not be read into the notification to defeat the exemption. It further held that Rule 56A(1)'s non obstante clause did not displace an independent exemption under Rule 8(1), as the two operated in different fields. The exemption therefore remained available, subject to procedural compliance.

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Issues: Whether the proviso inserted in the exemption notification issued under Rule 8(1) of the Central Excise Rules, 1944, requiring that the procedure set out in Rule 56A be followed, imported only the procedural mechanism of Rule 56A or also the substantive no-credit restrictions contained in the provisos to Rule 56A(2).

Analysis: The exemption notification granted relief to synthetic organic dyestuffs manufactured from imported intermediates, and the later proviso referred only to the "procedure set out in Rule 56A". The Court held that this wording was deliberate and did not incorporate the entire substantive scheme of Rule 56A. Rule 56A contains both procedural steps for availing the benefit and substantive conditions that bar credit in specified situations, but only the procedural machinery was brought in by the proviso to the exemption notification. The provisos to Rule 56A(2) could not be telescoped into the exemption notification to defeat the exemption itself. The Court also held that Rule 56A(1)'s non obstante clause did not override an independent exemption operating under Rule 8(1), and that the two provisions operated in different fields.

Conclusion: The proviso to the exemption notification imported only the procedure under Rule 56A and not the substantive disqualifications under Rule 56A(2); the assessee remained entitled to the exemption notification during its currency, subject only to procedural compliance.

Ratio Decidendi: Where an exemption notification expressly requires compliance with the "procedure" under another rule, only the procedural mechanism is incorporated unless the notification clearly adopts the substantive conditions and prohibitions of that rule.

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