2004 (4) TMI 391 - AT - Central Excise

Summary

Issues:
Appeal against duty demand and penalty confirmation under impugned orders-in-original regarding exemption under Chapter Heading 4802.10 of Central Excise Tariff Act for supply of goods to Delhi Bureau of Text Books (DBT) based on ownership and purchase order criteria.

Analysis:
The appellants, engaged in manufacturing writing and printing paper under Chapter 48, supplied goods to DBT following an order from the Secretary of DBT, claiming duty exemption under Chapter Heading 4802.10. The denial of exemption was based on DBT not being a State Text Books Publication Corporation or a Board owned by the State, and the purchase order not being placed by an officer of sufficient rank. The Counsel argued that DBT is a Delhi State Government Board, supported by the Chairman's signature, meeting exemption conditions. The SDR, however, supported the impugned order's correctness.

Upon review, it was found that the appellants supplied goods to DBT, wholly owned by the State Government of Delhi, as confirmed by a certificate from the Director. This refuted the Department's claim that DBT is not a Government-owned entity. Although the initial purchase order was from the Secretary of DBT, it was later countersigned by the Chairman, who is also the Special Secretary of Education of the Government of NCT of Delhi. The Chairman's position aligns with the conditions of the sub-heading notes of Chapter 48, satisfying the exemption criteria. The appellants, supplying goods falling under this sub-heading to a Government-owned body, met the exemption requirements.

Consequently, the impugned order was set aside, and the appellants' appeals were allowed with any consequential relief permitted by law.