TaxTMI 
TaxTMI 
1989 (9) TMI 246
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....n respect of certain inputs to be used for certain specified finished excisable products. The appellants sent out some of the inputs (in respect of which they availed MODVAT credit) to another unit for purpose of processing and ultimate use in the finished product which were declared by them, without obtaining permission from the authorities. The appellant, however, reversed a sum of Rs. 66,117.74 representing as MODVAT credit on their being pointed out by the authorities that they had sent the inputs outside without following the procedure, as laid down under Rule 57F(2) of the Central Excise Rules, 1944. This Rule envisages a permission to be obtained for the purpose. The appellants, after reversing the MODVAT credit, approached the autho....
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....the records that what has been held against the appellants is that they had sent the inputs out for processing without obtaining the permission of the competent authority as required under Rule 57F(2). The plead taken by the appellants is that they had nothing to gain by not taking permission as the inputs in question were used in the finished end-product declared by them. The learned Advocate was asked during the course of hearing whether he could satisfy the authorities that the said inputs, which had been sent to the other unit for processing, were ultimately used in the finished product, he has pleaded that the records would bear it out. 5. We also observe that the authorities on an application from the appellants for the same inputs....
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....oducts and return the same to his factory for further use in the manufacture of the final products, provided that the waste, if any, arising in the course of such operations is also returned to the said factory; or (b) for the purpose of manufacture of intermediate products necessary for the manufacture of the final products and return the said intermediate products to his factory for further use in the manufacture of the final products, provided that the waste, if any, arising in the course of manufacture of such intermediate products is also returned to the said factory: Provided that the said waste need not be returned to the said factory if the appropriate duty of excise leviable thereon has been paid." It is seen that the require....
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....pse ...... of the appellants by the authorities under the Rules. The situation in the present case is similar to the one in the case of Chapter X procedure or Rule 56A procedure under which certain procedural requirements like application for availing of the benefit of the concession and the permission etc. for the same are provided. The issue regarding the non-compliance with these provisions and the denial of the concession under the said provisions has come up before this Tribunal in a number of cases. This Tribunal has taken the decision that so long as there is substantial compliance with the provision of law as set out in a notification or of the Rule, the benefit could not be denied for a procedural lapse. It is observed that the cre....
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....that the verification from the Revenue point of view for ensuring that the concessional facility given for the legislative purpose cannot be done. Only after examining this aspect the benefit of the relief provided can be denied. In the instant case we find the appellants for subsequent period have been given permission for removing the same inputs for processing outside the factory and necessary parameters exist for the purpose of verification as to whether the inputs earlier removed were utilised for the purpose for which the MODVAT concession had been legislated. In this background, therefore, we hold that the lower authority should re-examine the matter and determine whether with reference to the records it can be verified that the inpu....