2011 (1) TMI 540 - AT - Central Excise

Waiver of pre-deposit - Exemption bases on ICB - benefit under Notification No. 6/06-C.E., dated 1-3-2006 - goods supplied against the International Competitive Bidding under Notification - , once the appellant is able to establish that the goods similar to those manufactured in India when imported into India from abroad are exempt under Customs Tariff Act, 1975, such goods manufactured in India would be entitled to avail the benefit under the notification - The condition nowhere states that when various other conditions which can be made applicable to avail the benefit under the Customs Act when the goods are imported into India would also automatically apply to the similar products manufactured in India in order to avail the benefit of the said notification.Prima facie, case has been made out for grant of stay as granted for earlier period.

Summary

Issues:
Grant of exemption benefit under Notification No. 6/06-C.E. dated 1-3-2006.

Analysis:
The appeal challenges the decision of authorities denying exemption benefit under Notification No. 6/06-C.E. The Senior Counsel argued that denial was solely due to non-compliance with conditions related to imported goods without considering if they apply to domestically manufactured products. The DR, however, cited precedents to support the denial based on compliance requirements under Notification No. 21/02-Cus. It was noted that compliance with Customs Act provisions for imported goods cannot be automatically applied to domestically manufactured goods under Excise Act notifications.

Regarding Notification No. 6/2006, to qualify for exemption for goods supplied through International Competitive Bidding, compliance with Condition No. 19 is necessary. This condition pertains to exemption from customs duties when goods are imported into India. If goods similar to domestically manufactured ones are exempt under the Customs Tariff Act, the benefit under the notification should apply. Notably, the condition does not mandate automatic application of all import-related conditions to domestically manufactured products for availing benefits. The Tribunal found grounds to grant a stay similar to previous periods, covering show cause notices from April 2008 to December 2009.

The Tribunal emphasized that decisions related to imported goods and Customs Act provisions cannot be directly applied to cases involving domestically manufactured goods. Citing previous orders, the Tribunal allowed the application and waived the demanded amount until the appeal's disposal. The decision was based on the arguments presented and the precedent set by previous stay applications.

In conclusion, the Tribunal granted the stay application, emphasizing the need to consider specific conditions and distinctions between imported and domestically manufactured goods when applying exemption benefits under relevant notifications. The decision highlighted the importance of assessing compliance requirements under different Acts for imported and domestically produced goods to determine eligibility for exemption benefits.