Set-off on duty-paid inputs for masticated rubber turns on correlating input quantities with finished excisable goods.

Duty-paid Item 68 inputs used in manufacturing masticated rubber could qualify for set-off when the assessee could correlate the quantity of such inputs with the finished excisable goods produced from them. The relief was to be computed on a pro rata basis on the basis of the necessary particulars, rather than denied for want of exact overall matching. The matter was remanded for quantification of the relief in accordance with the earlier Tribunal ruling and the relevant notification benefit was treated as available on proof of correlation.

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Issues: Whether the assessee was entitled to set-off of duty already paid on Item 68 inputs used in the manufacture of masticated rubber and consequential relief in respect of the finished excisable goods manufactured therefrom.

Analysis: The Tribunal followed its earlier decision on the same question and held that the benefit of the notification was available if the assessee could correlate the quantity of duty-paid inputs with the finished excisable goods manufactured using them. It further accepted that the Department should compute the relief on a pro rata basis after calling for the necessary particulars.

Conclusion: The assessee was entitled to claim the relief, and the matter was remanded to the Assistant Collector to work out the quantum of relief in accordance with the earlier Tribunal ruling.

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