2012 (2) TMI 575 - HC - Central Excise

Summary

Issues involved: Whether CESTAT was justified in setting aside duty demand u/s 11A(2), penalty u/s 11AC, and interest determined u/s 11AB of the Central Excise Act, 1944.

Summary:
The respondent-assessee, engaged in manufacturing ACSR Moose Conductors, availed duty exemption u/s 108/95-C.E. for products sold to M/s. Transmission Corporation of Andhra Pradesh financed by Japan Bank. Excise Authorities later found Japan Bank not notified as an International Organization, rendering the exemption invalid.

Proceedings confirmed duty, penalty, and interest against the assessee. CESTAT held that benefit was extended based on a certificate from the State Government, absolving the assessee of fault. Even if liable to pay duty, the assessee could claim refund as per policy. As it was a revenue-neutral case, CESTAT's decision to delete duty, penalty, and interest was upheld, dismissing the appeal with no costs.