2007 (8) TMI 531 - AT - Central Excise

Defence supplies - Exemption - N/N. 63/95-C.E., dated 16-3-1995 - Held that - the appellants are clearly entitled to the benefit of notification 63/95 as there is no dispute that the goods manufactured by them has been supplied to M/s. BEML, who in turn had supplied them to the Ministry of Defence - appeal allowed.

Summary

Issues:
Claim of exemption under Notification No. 63/95-C.E. for goods supplied to Ministry of Defence by appellant.

Analysis:
The appellant was clearing goods to M/s. Bharat Earth Movers Ltd. and claimed exemption under Notification No. 63/95-C.E. The demands were issued to them stating that the exemption would not be available as the goods were not manufactured by M/s. BEML but by the appellant. The appellant argued that they were entitled to the exemption based on circulars issued by the Board, which clarified that the benefit of the notification would be extended to all job workers and vendors supplying inputs required by M/s. BEML for the manufacture of finished goods supplied to the Ministry of Defence. The appellant contended that they fell within this category and should be granted the exemption.

The Tribunal considered the submissions and found that the appellant was entitled to the benefit of Notification 63/95 as per the Board's circulars. It was noted that there was no dispute that the goods manufactured by the appellant were supplied to M/s. BEML, who then supplied them to the Ministry of Defence. Relying on the circulars and the Apex Court decision in the case of C.C.E. v. Dhiren Chemical Industries, it was held that the benefit of the exemption cannot be denied. Therefore, the Commissioner's order was set aside, and both appeals were allowed.