Rebate under Notification 108/78 is confined to duty actually paid or payable, not the notified rate beyond duty incidence.

Notification No. 108/78 was interpreted as limiting rebate to the duty actually paid or payable on clearance of the goods, and not as creating any entitlement to rebate at the prescribed rate regardless of duty incidence. The controlling principle applied was that rebate or exemption under such a notification cannot exceed the duty otherwise leviable. On that basis, the view allowing rebate beyond the duty actually paid was rejected, and the impugned order was set aside to the extent it permitted excess rebate.

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Issues: Whether rebate under Notification No. 108/78 could be granted at the prescribed rate irrespective of the duty actually paid, or whether it was confined to the amount of duty actually paid or payable.

Analysis: The Notification was interpreted as not creating a right to rebate beyond the duty incidence. The controlling principle applied was that rebate or exemption under such a notification cannot exceed the duty otherwise payable, and the benefit is limited to the duty actually paid on clearance of the goods.

Conclusion: The rebate claim could not be allowed beyond the duty actually paid or payable, and the view granting rebate at the notified rates irrespective of duty paid was rejected.

Final Conclusion: The impugned order was set aside to the extent it permitted rebate beyond the duty actually paid, and the appeal succeeded on the substantive rebate issue.

Ratio Decidendi: Rebate or exemption under the notification is confined to the duty actually paid or payable and cannot exceed the duty otherwise leviable.

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