2015 (9) TMI 1145 - AT - Central Excise

Denial of concession under Notification No. 108/95-CE dated 28.08.1995 - supplies were made for the project financed by the International Development Association - Held that - International Development Association is part of the World Bank (International Bank for Re-construction and Development). The said Bank has been given privileges in terms of Section 3 of the United Nations (Privileges And Immunities) Act, 1947 - Decided against Revenue.

Summary

Issues:
- Appeal against Order-in-Appeal dated 16.01.2006 passed by Commissioner (Appeals) regarding duty payment for Tractors cleared without duty payment under Notification No. 108/95-CE.
- Eligibility of the International Development Association for concession under the said Notification.

Analysis:
1. The appeal was filed by the department challenging the Order-in-Appeal passed by the Commissioner (Appeals) regarding the clearance of Tractors without duty payment based on a certificate issued under Notification No. 108/95-CE. The supplies were made for a project financed by the International Development Association, which was questioned for eligibility for concession under the said Notification. The original authority confirmed the demand, but the Commissioner (Appeals) allowed the appeal, leading to the department's challenge before the Appellate Tribunal.

2. The department argued that the exemption notification was wrongly allowed in the impugned order. The respondent submitted a certificate signed by the Secretary, Irrigation Department, Government of Rajasthan, and counter-signed by the Additional Chief Secretary, Finance Department, Government of Rajasthan. The certificate indicated that the project was funded by the International Development Association and implemented by the Government of Rajasthan, with the construction equipment necessary for the project duly approved by the Government of India.

3. The Tribunal noted that the International Development Association is a part of the World Bank, specifically the International Bank for Reconstruction and Development. It highlighted that the said Bank enjoys privileges under Section 3 of the United Nations (Privileges And Immunities) Act, 1947. Consequently, the Tribunal found no merit in the department's appeal and dismissed it, affirming the eligibility of the International Development Association for concession under the notification in question.

This judgment clarifies the eligibility of the International Development Association for concessions under specific notifications, emphasizing its affiliation with the World Bank and the privileges granted under relevant international agreements. The decision underscores the importance of considering international organizations' status and privileges while interpreting and applying exemption notifications in customs and excise matters.