2008 (4) TMI 555 - AT - Central Excise

Summary

Issues:
Admissibility of exemption under Notification No. 3/2004-C.E. on goods supplied to a specific project.

Analysis:
The case involved a stay petition against an Order-in-Appeal confirming duty demand, education cess, and penalty under the Central Excise Act, 1944. The issue revolved around the admissibility of exemption under Notification No. 3/2004-C.E. on goods supplied to a particular project. The District Magistrate's certificate identified the project and goods required, aligning with the conditions of the notification. The certificate specifically referenced the Purchase Order, indicating compliance with the notification's requirements. The Tribunal found that the benefit of the notification was not deniable to the appellants based on procedural non-fulfillment grounds.

The Tribunal, after hearing both sides and examining the records, concluded that the appellants had a strong case for a complete waiver of the pre-deposit of duty and penalty. Considering the prima facie compliance with the conditions of the notification and the identification of the project and goods, the Tribunal dispensed with the pre-deposit of the duty demanded and the penalty imposed. Recovery of the duty and penalty was stayed pending the appeal's disposal, providing relief to the appellants during the ongoing legal proceedings.