2015 (4) TMI 120 - SC - Central Excise

Exemption under the Notification 88/88 C.E . dated 1.3.1988 - village industries i.e. where such goods are manufactured in rural areas by registered co-operative societies, or by women s societies or by the institution recognised by village Industries Commission or Board on certain conditions which are laid down in the said Notification - Held that - it has been established by the respondent that the conditions contained in the exemption Notification are satisfied. Not only this, the respondent is armed with a certificate issued by the Department of the Electronic to the effect that the individual components were assembled in the factory of the respondent which is in a rural area. - No question of law which arises for consideration - Decided against Revenue.

Summary

Issues:
Entitlement to exemption under Notification 88/88 C.E. for village industries based on conditions specified, including assembling of individual components in rural areas.

Analysis:
The judgment revolves around the dispute regarding the entitlement of the respondent to exemption under Notification 88/88 C.E. dated 1.3.1988, which provides exemption to village industries subject to certain conditions. One such condition is the assembly of individual components of goods in rural areas by registered co-operative societies, women's societies, or recognized institutions. The respondent was initially granted the exemption based on satisfying all conditions. However, a show cause notice was later issued alleging non-compliance with the assembling condition. The Commissioner dropped the proceedings after the respondent refuted the allegation, leading to the Department's appeal before CEGAT.

Upon review, the CEGAT dismissed the appeal, finding that the respondent had indeed met the conditions stipulated in the exemption Notification. Additionally, the respondent possessed a certificate from the Department of Electronics confirming the assembly of individual components in the rural area factory. Consequently, the Supreme Court concluded that there was no legal question requiring consideration in the appeal, leading to the dismissal of the appeal.

In essence, the judgment emphasizes the importance of fulfilling the conditions specified in exemption Notifications for availing benefits. It highlights the significance of documentary evidence, such as certificates, to substantiate compliance with the prescribed criteria. The decision underscores the need for meticulous adherence to regulatory requirements to avoid disputes and legal challenges, ultimately reaffirming the principle of upholding the integrity of exemption provisions within the legal framework.