2012 (12) TMI 508 - AT - Central Excise

Waiver of pre-deposit denial of the benefit of Notification No.10/97-CE dated 1/3/97 to the assessee in respect of certain goods which were supplied by them to certain public-funded research institutions nature of the goods cleared by the appellant to such institutions Held that - Goods so cleared include boring machine rotary table base plates cradle assembly and planetary gear box etc. - these items were used by customers for research-related purposes and therefore the benefit of the above Notification cannot be denied to the assessee - on the strength of the certificates of public-funded research institutions - waiver of pre-deposit allowed

Summary

Issues:
1. Waiver and stay sought by the appellant in respect of duty and penalty arising from denial of benefit of Notification No.10/97-CE dated 1/3/97.
2. Dispute regarding the nature of goods cleared by the appellant to public-funded research institutions under the said Notification.

Issue 1:
The appellant sought waiver and stay in relation to the duty and penalty arising from the denial of the benefit of Notification No.10/97-CE dated 1/3/97. This notification exempted specific goods from excise duty if supplied to public-funded research institutions for research activities, supported by relevant certificates. The appellant had cleared goods to such institutions, supported by certificates. The dispute centered on whether the goods, including items like boring machine and rotary table, were used for research-related purposes, thus qualifying for the exemption. The appellant argued that the benefit of the Notification should not be denied based on the usage of the goods by the customers, citing relevant legal precedents.

Issue 2:
The Tribunal considered the submissions and certificates from public-funded research institutions, along with the legal precedents cited by the appellant. The Tribunal found a prima facie case in favor of the appellant, especially considering the decisions of the Bench in similar cases involving the appellant-company. Consequently, the Tribunal granted waiver of predeposit and stay of recovery concerning the adjudged dues, acknowledging the support from the certificates and legal precedents presented by the appellant.

This judgment from the Appellate Tribunal CESTAT, Bangalore addressed the appellant's request for waiver and stay concerning duty and penalty linked to the denial of benefits under Notification No.10/97-CE. The dispute revolved around the nature of goods supplied by the appellant to public-funded research institutions, with the appellant arguing that the goods were used for research-related purposes, thus qualifying for the exemption. The Tribunal, after considering the certificates from the institutions and legal precedents cited by the appellant, found merit in the appellant's case and granted the waiver and stay of recovery of the adjudged dues.