2007 (7) TMI 481 - AT - Central Excise

Summary

Issues:
Waiver of pre-deposit of duty and penalties based on the interpretation of Notification No. 108/95-CE regarding goods supplied to UNICEF.

Analysis:
The case involved the applicant seeking a waiver of pre-deposit of duty amounting to Rs. 13,76,762/- and penalties. The demand was contested as the benefit of Notification No. 108/95-CE was denied, citing the condition that a certificate from an officer not below the rank of Deputy Secretary was required when goods were cleared without payment of duty to UNICEF contractors. The applicant argued that the goods were supplied to UNICEF, an international organization listed in the annexure to the notification, for use in a government-approved project. It was highlighted that the required certificate was obtained from UNICEF, and invoices showed the goods were supplied on behalf of UNICEF to the Government of Orissa's medical store. The applicant contended that only a certificate from UNICEF was necessary for availing the notification's benefit, which was duly provided, making the demand unsustainable.

The Tribunal, after considering the evidence presented, acknowledged that the goods were manufactured by the applicant and supplied to various organizations on behalf of UNICEF, with the requisite certificates obtained from UNICEF. Consequently, the Tribunal found merit in the applicant's case, leading to the waiver of the pre-deposit of duty and penalties. The decision was made in favor of the applicant, and the stay petition was allowed. The judgment emphasized the importance of complying with the specific requirements outlined in the notification and the significance of providing necessary documentation to support the claim for benefit under such notifications.