Rule 56A compliance was mandatory for excise exemption under Notification 144/65-C.E.; prior duty payment did not replace procedure.

Exemption under Notification No. 144/65-C.E. was conditional on compliance with the procedure in Rule 56A of the Central Excise Rules, 1944, because the proviso inserted from 01.08.1980 made that procedure mandatory. An assessee had to apply to the Collector and follow the prescribed steps before availing the benefit, and prior payment of duty under Section 3 of the Customs Tariff Act, 1975 did not dispense with that requirement. In the absence of any such application or compliance, the exemption was not admissible and the benefit of the notification could not be claimed.

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Issues: Whether exemption under Notification No. 144/65-C.E. dated 04.09.1965 could be claimed without following the procedure prescribed in Rule 56A of the Central Excise Rules, 1944.

Analysis: The exemption notification was issued under Rule 8(1) of the Central Excise Rules, 1944, and the proviso inserted with effect from 01.08.1980 made compliance with the procedure in Rule 56A mandatory. Rule 56A required an application to the Collector and observance of the prescribed procedure before the benefit could be availed. No such application or compliance was shown, and the fact that duty had been paid under Section 3 of the Customs Tariff Act, 1975 did not dispense with the statutory procedure.

Conclusion: The exemption was not admissible without compliance with Rule 56A, and the respondent was not entitled to the benefit of the notification.

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