2008 (8) TMI 633 - AT - Central Excise

Pipes and tubes - Exemption for supply to drinking water project - Refund - Unjust enrichment

Summary

Issues:
Exemption under Notification No. 6/02-C.E. dated 1-3-2002 for supply of pipes and tubes for a drinking water project.

Analysis:
The Appellate Tribunal considered the case where the Appellants supplied pipes and tubes for a drinking water project on behalf of M/s. TISCO. The Authorities had denied exemption under Notification No. 6/02-C.E. dated 1-3-2002, citing that the required certificate was not submitted before clearance of the goods and was not in the name of the Appellants. However, the Tribunal noted that the Notification did not specify that the certificates should exist before clearance or be in the supplier's name. It was observed that the impugned goods were supplied urgently for a government project, and there was no unjust enrichment as the duty was not reimbursed by the project Authorities to the Appellants.

The learned Consultant for the Appellants clarified that they were acting on behalf of M/s. TISCO, who owned the goods until supply to the project. The supply was made on payment of duty due to the urgent requirement by the Govt. of Karnataka for the drinking water project. Considering the facts, wording of the Notification, and the absence of unjust enrichment, the Tribunal set aside the impugned order and allowed the Appeal. The Appellants were directed to receive a consequential refund promptly after the order's receipt.

In conclusion, the Appeal was allowed based on the circumstances that the Appellants were acting on behalf of the project owner, the urgent nature of the supply for a government project, and the absence of unjust enrichment. The Tribunal emphasized that the Notification did not mandate pre-clearance submission of certificates or that they should be in the supplier's name, leading to the decision in favor of the Appellants for exemption under the Notification.