2014 (1) TMI 159 - AT - Central Excise

Denial of Benefit of Exemption Notification No.6/2006 Necessary certificates not available at the time of clearance - Held that - Following Commissioner of Customs, Bangalore vs. Integra Micro Systems (P) Ltd. 2004 (12) TMI 118 - CESTAT, BANGALORE - Exemption notification benefit cannot be denied on the procedural requirement of the production of certificate on the ground that there was delayed submission of such certificate - late production of certificate cannot result in denial of benefit of notification - order set aside Decided in favour of Assessee.

Summary

Issues:
Exemption from duty under notification No. 6/2006-CE for the supply of PSCC pipes; Denial of benefit of notification due to delayed submission of required certificates.

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Issue 1: Exemption under notification No. 6/2006-CE

The appellants, engaged in manufacturing PSCC pipes for water transportation, had a contract with a project for supplying these pipes. They claimed exemption from duty under notification No. 6/2006-CE, which required a certificate from the Collector and District Magistrate of a specific district. The appellants did produce the necessary certificate for clearance from their factory, which was not disputed.

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Issue 2: Denial of benefit due to delayed submission of certificates

Subsequently, the quantity of pipes to be supplied was increased, and the appellants continued to clear goods without duty payment under the notification, producing the required certificates after clearance. However, the lower authorities initiated proceedings against them, alleging that the certificates were not available at the time of clearance, leading to the demand confirmation and penalty imposition.

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Detailed Analysis:

The Tribunal examined the grounds for denying the notification benefit, primarily focusing on the timing of certificate production. The lower authorities contended that the certificates were not available during goods clearance. However, the Tribunal referenced the case of Commissioner of Customs, Bangalore vs. Integra Micro Systems (P) Ltd., where it was held that delayed submission of certificates should not result in denial of the notification benefit. Relying on this precedent and disregarding other judgments, the Tribunal ruled that late certificate production should not lead to benefit denial. Consequently, the impugned order was set aside, and the appeal was allowed.

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In conclusion, the Tribunal's decision emphasized that procedural delays in certificate submission should not automatically lead to the denial of exemption benefits under relevant notifications. By aligning with established legal precedents, the Tribunal upheld the appellants' right to the exemption, highlighting the importance of substantive compliance over procedural technicalities in such cases.