2005 (4) TMI 458 - AT - Central Excise

Summary

Issues involved:
Whether the benefit of Notification No. 108/95-C.E., dated 28-8-1995 is available to the goods manufactured and cleared by M/s. Flex Industries Ltd.

Analysis:

Issue 1: Benefit of Notification No. 108/95-C.E.
The main issue in the appeals was whether the goods manufactured and cleared by M/s. Flex Industries Ltd. were eligible for the benefit of Notification No. 108/95-C.E., dated 28-8-1995. The Appellant argued that they had supplied machinery items for a project financed by an International Organisation, supported by the World Bank. They contended that the certificate from the International Organisation was not issued directly but was obtained from the project authority, Punjab Energy Development Agency. The Appellant cited precedents where certificates from duly authorized persons were accepted by the Tribunal. However, the Revenue contended that the specific condition of obtaining a certificate from the International Organisation itself was not fulfilled, as required by the Notification.

Issue 2: Compliance with Notification Conditions
The Tribunal analyzed the proviso to Notification No. 108/95-C.E., which mandated the production of a certificate from the International Organisation before clearance of goods. It was noted that the Appellant failed to produce the required certificate from the International Organisation financing the project. The Tribunal referred to past decisions, including one by the Supreme Court, emphasizing that strict compliance with the conditions of the Notification was necessary to avail the exemption benefits. The Tribunal highlighted that even after the amendment to the Notification, requiring a certificate from the nodal ministry in the Government of India, the Appellant only provided a certificate from the project authority, Punjab Energy Development Agency, which did not meet the updated criteria.

Conclusion:
The Tribunal rejected the appeals, concluding that the Appellant did not comply with the essential condition of producing a certificate from the International Organisation as required by Notification No. 108/95-C.E. The Tribunal emphasized the significance of strict adherence to the Notification's conditions for availing exemption benefits, as established by legal precedents. The Appellant's reliance on certificates from other authorities was deemed insufficient, leading to the dismissal of the appeals.