Substantial compliance with exemption conditions preserves relief despite late filing of a supporting Naval certificate.

Exemption under Notification No. 64/95-Central Excise could not be denied merely because the amended certificate from the Naval authority was filed late, where the original certificate had been produced and the substantive condition of manufacture for use by the Indian Navy was otherwise satisfied. The applicable principle was substantial compliance with the notification condition: once the essential requirement was met in substance, belated filing of the supporting certificate did not defeat the exemption claim.

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Issues: Whether the assessee was entitled to exemption under Notification No. 64/95-Central Excise dated 16-3-1995 notwithstanding delayed submission of the certificate from the Naval authority.

Analysis: The condition under Clause 12 of the notification required manufacture for use by the Indian Navy and a certificate from the concerned Naval authority before removal. The original certificate was admittedly produced, and the Tribunal found that the statutory condition had been fulfilled in substance. Following the principle that exemption cannot be denied when the requirement is substantially complied with, the delayed filing of the amended certificate did not defeat the exemption claim.

Conclusion: The assessee satisfied the notification condition and was not to be denied exemption on the ground of belated submission of the certificate.

Ratio Decidendi: Where the essential condition for an exemption notification is substantially complied with, a delayed supporting certificate will not by itself defeat the exemption.

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