- (1.) The Customs Authorities are in appeal from a judgment rendered by the Customs, Excise and Gold (Control) Appellate Tribunal.
(2.) The respondents manufacture polyester chips, polyester staple fibre and tow from mono-ethylene glycol (MEG). They imported the same and claimed that they were not liable to pay an additional duty of customs thereon because MEG was exempt from the payment of excise duty by virtue of a notification dated 4-5-1987 issued under Rule 8 of the Central Excise rules, 1944. The said notification provided that "meg was exempt from the payment of the whole of the duty of excise leviable thereon which is specified in the said Schedule provided that such mono-ethylene glycol is used in the manufacture of polyester chips or polyester staple fibre and tow, including tops or polyester filament yam and the procedure set out in Chapter X of the Central Excise Rules, 1944 is followed". The claim was rejected by the Assistant Collector and, in appeal, by the collector. The Tribunal, in further appeal, upheld the respondents' claim.
(3.) It appears from the judgment of the Tribunal that the departmental representative appearing on behalf of the Customs Authorities submitted before it that the respondents could not claim the benefit of the said notification, but there is no discussion on this aspect. It was also urged on behalf of the Customs Authorities that, in any event, the respondents had not satisfied the condition of the said notification because they had failed to follow the procedure laid down in Chapter X of the Central Excise Rules. On this aspect there is a discussion in the order of the Tribunal and it has been held, based on facts, that there had been substantial compliance with the said procedure by the respondents.;