2007 (10) TMI 497 - AT - Central Excise

Summary

Issues involved: Challenge to order for recovery of Central Excise Duty, denial of exemption under Notification No. 108/95-C.E., validity of certificate submission.

Central Excise Duty Recovery: The appellant contested an order directing recovery of Central Excise Duty and penalty, based on scrutiny of ER-1 Return revealing clearance of goods claiming exemption under Notification No. 108/95-C.E. The adjudicating authority and Commissioner (Appeals) denied exemption due to lack of proof of certificate submission before clearance.

Exemption Denial under Notification No. 108/95-C.E.: The appellant obtained a certificate from the World Health Organization certifying the necessity of supplied goods for official use. The certificate, sent via post, confirmed exemption eligibility under the notification. Despite delayed receipt by the Department, the Tribunal emphasized substantial compliance theory from prior cases, ruling that late submission of essential certificates should not warrant denial of exemption.

Validity of Certificate Submission: The Tribunal set aside the impugned orders, highlighting that the appellant's entitlement to exemption was established through the genuine certificate obtained before goods clearance. Emphasizing the injustice of denying exemption due to procedural lapses, the Tribunal allowed the appeal, underscoring the importance of substantial compliance in such cases.

Conclusion: The Tribunal overturned the Appellate Commissioner's decision and the adjudication order, recognizing the appellant's right to exemption under Notification No. 108/95-C.E. The appeal was allowed, emphasizing the significance of genuine certificate submission and substantial compliance in excise duty matters.