2015 (1) TMI 494 - AT - Central Excise

Waiver of pre-deposit - goods were supplied to Tamil Nadu Water Supply and Drainage Board for execution of the project under the World Bank assistance - Notification No.108/95 - Held that - It has been submitted that the loan is sanctioned by the World Bank only on approval of the project by the Govt. of India and therefore all the conditions of the Notification has been fulfilled. We find that the name of the assessee is specifically appearing on the certificate issued by Secretary to the Government, Finance Deptt., Govt. of Tamil Nadu, Chennai. In view of these facts prima facie we are of the opinion that the Applicant has been able to make out a case for full waiver of the pre-deposit. - Stay granted.

Summary

Issues:
Waiver of pre-deposit of Central Excise duty, interest, and penalty under Section 11AC of the Central Excise Act, 1944.

Analysis:

Issue 1: Waiver of pre-deposit of Central Excise duty, interest, and penalty

The Application sought waiver of pre-deposit of Central Excise duty amounting to Rs. 1,39,786, along with unspecified interest and penalty under Section 11AC of the Central Excise Act, 1944. The Applicant contended that the goods supplied to Tamil Nadu Water Supply and Drainage Board for a project under World Bank assistance fulfilled the conditions of Notification No.108/95-CE dated 28.08.1995, exempting goods supplied to projects approved by the Government of India and financed by international organizations. The Ld. Consultant argued that the loan approval by the World Bank necessitated Govt. of India's project approval, fulfilling all conditions. The Ld. A.R. for Revenue, however, maintained that the certificate did not clearly indicate Govt. of India's approval for the project, thus denying the exemption. After considering both arguments, the Tribunal found that the Applicant had met the conditions of the Notification, as the goods were supplied for an approved project under World Bank assistance, with the project's approval by the Govt. of India. Notably, the certificate from the Govt. of Tamil Nadu indicated the Applicant's involvement in the project, leading the Tribunal to grant a full waiver of the pre-deposit, staying the recovery during the Appeal's pendency.

In conclusion, the Tribunal granted the Applicant's request for waiver of pre-deposit of Central Excise duty, interest, and penalty under Section 11AC of the Central Excise Act, 1944, based on the fulfillment of conditions outlined in Notification No.108/95-CE dated 28.08.1995 for goods supplied to an approved project financed by an international organization, with Govt. of India's approval.

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