Delayed input-output statement did not defeat exemption credit where substantive notification conditions were otherwise satisfied.

Substantive exemption credit under the notification was available where the assessee had informed the department, received duty-paid inputs, and used them in manufacture, even though the prescribed input-output ratio statement was furnished later because of practical difficulty. The delayed statement did not defeat the benefit when the substantive conditions were otherwise satisfied, and approval of the statement was treated as relating back to the original application. The claim was treated as one for credit utilisation against future clearances, not as a cash refund, and the assessee was entitled to credit in its RG 23 account for duty on future clearances of grinding wheels.

---

---

Issues: Whether the assessee was entitled to credit of duty paid on inputs received from 11-7-1977 and to utilise the same for future clearances of grinding wheels, notwithstanding the delay in furnishing the input-output ratio statement required under the notification.

Analysis: The assessee had informed the department of its intention to avail the benefit of the exemption notification, had received duty-paid abrasive grain, and had used it in the manufacture of grinding wheels. The statement of input-output ratio could be prepared only later because of practical difficulty and was approved thereafter. In such circumstances, denial of the substantive benefit merely because the prescribed statement was furnished later was held to be unwarranted, as the approval was treated as relating back to the date of the original application. The claim was treated as one for credit utilisation in future clearances rather than a cash refund claim.

Conclusion: The assessee was entitled to credit of duty paid on inputs received from 11-7-1977 and to utilise the same in its RG 23 account for payment of duty on future clearances of grinding wheels.

Final Conclusion: The substantive exemption benefit was restored to the assessee, and the appeals succeeded to that extent.

Ratio Decidendi: Where the substantive conditions for availing notification benefit are satisfied, delayed submission of an input-output ratio statement due to practical difficulty does not defeat the benefit, and approval may relate back to the date of the application.

---