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2007 (3) TMI 605 - AT - Central Excise
Issues Involved: Appeal against order of Commissioner (Appeals) regarding availment of exemption u/s Notification No. 108/95 for goods supplied to World Bank-funded project contractors.
Summary: The appeal was made against the Commissioner (Appeals) order dated 31-10-2006, concerning the clearance of Bitumen Emulsions and Bitumen products to contractors working on a World Bank-funded project. The dispute arose as the Project Implementing Authority issued certificates to contractors, not in the name of the appellant, leading to a demand for duty payment of Rs. 9,64,025/-, interest, and penalty. The appellant claimed compliance with Notification No. 108/95, arguing that the certificate need not be in their name. The Commissioner (Appeals) upheld the original authority's decision. The appellant's advocate cited various judgments supporting the view that the certificate need not be in the appellant's name to avail of the exemption under Notification No. 108/95. Conversely, the department argued for strict construction of the notification, contending that the certificate should be in the supplier's name to claim exemption. After considering the submissions, it was noted that the project was World Bank-funded, divided into contracts for different works, and the goods supplied were used for the project. The purpose of the certificate was to ensure duty-free materials were used for the project, not necessarily issued in the supplier's name. The Notification served as an end-use requirement for the World Bank-funded work, with no stipulation that the certificate must be in the supplier's name. The judgments cited by the appellant's advocate supported extending the Notification's benefit as long as the products were used for the intended project. Consequently, the Tribunal allowed the appeal, emphasizing that the Notification's purpose was to ensure the materials were used for the World Bank-funded project, irrespective of the certificate holder's name. *(Pronounced in Court on 29-3-2007)*
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