Duty set-off under Notification No. 95/83 required reconsideration where intermediate motor duty and refund issues were not examined.

Notification No. 95/83 operated as a set-off provision granting duty relief on specified finished products to the extent of duty paid on prescribed inputs. The dispute concerned electric stampings and laminations used first to make electric motors, which were then used in manufacturing electric fans, and whether relief could be denied merely because duty had not been paid on the intermediate motors. The assessee's offer to pay duty on the motors had not been examined, and the appellate order also failed to consider the Ministry's instructions and the settled position on cash refund in special circumstances. The matter was therefore required to be reconsidered by the original authority after hearing the assessee and allowing additional evidence.

---

---

Issues: Whether the assessee was entitled to the benefit of Notification No. 95/83 despite not having paid duty on the intermediate electric motors, and whether the matter required reconsideration because the appellate order did not deal with the assessee's offer to pay duty on the motors.

Analysis: Notification No. 95/83 was a set-off notification granting duty relief in respect of specified finished products to the extent of duty paid on prescribed inputs. The record showed that electric stampings and laminations were used first for manufacture of electric motors, which were in turn used in the manufacture of electric fans. The assessee had offered to pay duty on the electric motors, but that offer had not been examined. The order under challenge proceeded only on the ground that duty had not been paid on the motors and did not consider the effect of the Ministry's instructions or the settled position that cash refund can be admissible in special circumstances.

Conclusion: The denial of relief could not be sustained on the existing order, and the matter had to be reconsidered by the original authority after hearing the assessee and permitting additional evidence.

---