2007 (2) TMI 394 - AT - Central Excise

Summary

Issues:
Claim of exemption under Notification No. 10/97-CE dated 1-3-1997 for goods supplied to specified institution.

Analysis:
The appellant claimed the benefit of exemption under Notification No. 10/97-CE for goods supplied to a specified institution. The conditions for exemption included the issuance of requisite certificates, which were duly provided on 14-12-2001. The appellant's goods were removed and supplied by 27th February, 2002. Despite a subsequent withdrawal of the facility for issuing essentiality certificates by the University on 26-6-2002, the transactions conducted under the cover of the essentiality certificates should not be affected. The withdrawal was not expressly made retrospective, and there was no indication of implied retroactive effect in the communication. Therefore, the appellant demonstrated a prima facie case for waiver of pre-deposit of duty and penalty amounts as per the impugned order.

The Tribunal recognized that the appellant had validly obtained essentiality certificates before the withdrawal of the facility by the University. The communication from the University, although mentioning the withdrawal of the facility, did not specify any retrospective application of the decision. As a result, the transactions carried out based on the essentiality certificates could not be invalidated post facto. Consequently, the Tribunal granted interim stay on the recovery of duty and penalty pending the appeal hearing, acknowledging the appellant's entitlement to the exemption claimed under Notification No. 10/97-CE.

The Tribunal emphasized the importance of the timing and validity of essentiality certificates in claiming exemptions under Notification No. 10/97-CE. By fulfilling the conditions and obtaining the necessary certificates before the withdrawal of the facility, the appellant demonstrated compliance with the exemption requirements. The Tribunal's decision to grant interim stay on the recovery of duty and penalty reflected a consideration of the circumstances surrounding the withdrawal of the facility and its impact on the appellant's transactions. The appeal was scheduled for final hearing in due course, indicating the Tribunal's intention to thoroughly review the matter and make a final determination on the exemption claim.