2016 (10) TMI 472 - AT - Central Excise

Notification No.108/95-CE dated 28.08.1995 - benefit of exemption - goods not supplied directly to UNICEF but were supplied to project assisted and Financed by UNICEF - certificate for claiming benefit under the clause (b)(ii) of Notification No. 108/95 by an Officer not bellow the Rank of Deputy Secretary to Government of India was not produced by the appellant - Held that - the said notification as amended by notification No.40/99 dated 02/11/99 at clause (b) (i) provides that the goods supplied to organizations appearing in the annexure for the projects that is approved by Government of India and finance by such organizations and certified by such organization that the said goods are intended for such use, then such goods are exempted from the whole of duty of Central Excise. We find that various certificates and purchase orders and instruction of UNICEF to deliver the goods at various places and certificate issued by Procurement Officers of UNICEF which were produced before the first appellate authority were sufficient proof to establish the eligibility of appellant to the benefit of the said notification No. 108/95. The understanding of first appellate authority that goods were not supplied directly to United Nations Organization but supplied to a project and is covered by Clause (b)(ii) of the said Notification and required a certificate from officers not bellow the Rank of Deputy Secretary is not a correct appreciation of the provisions of said notification. We hold that the appellants were entitled for the clearances dealt with in three impugned show cause notices for benefit of said notification No. 108/95-CE dated 28/08/95. - Decided in favour of appellant

Summary

Issues:
- Eligibility for benefit of Notification No.108/95-CE dated 28.08.1995
- Interpretation of the provisions of the notification
- Requirement of certificate for claiming benefit under the notification
- Applicability of the notification to goods supplied to UNICEF projects

Eligibility for benefit of Notification No.108/95-CE dated 28.08.1995:
The case involved the appellants, manufacturers of chemicals, who cleared Stable Bleaching Powder without payment of Central Excise Duty by availing the benefit of Notification No.108/95-CE. The Revenue contended that the appellants were not eligible for the benefit as the goods were not directly supplied to UNICEF but to projects assisted and financed by UNICEF. Show cause notices were issued demanding Central Excise Duty, leading to adjudication orders confirming the demands. The appeal centered on whether the appellants were entitled to the benefit of the notification due to the nature of their supply.

Interpretation of the provisions of the notification:
The notification exempted goods intended for official use by United Nations or an International Organization from Central Excise Duty if certified by the organization. The Tribunal analyzed the notification and its amendments, emphasizing that goods supplied to approved projects financed by organizations listed in the annexure were eligible for exemption. The Tribunal scrutinized various certificates, purchase orders, and instructions from UNICEF to deliver goods, determining that these documents substantiated the appellants' eligibility for the notification's benefit. The correct interpretation of the notification's provisions was crucial in deciding the case.

Requirement of certificate for claiming benefit under the notification:
The original authority had held that a certificate from an officer not below the rank of Deputy Secretary to the Government of India was necessary to claim the benefit under the notification. However, the Tribunal disagreed with this interpretation, stating that the certificates and documents provided by the appellants, including those from UNICEF's Procurement Officers, were sufficient to establish their entitlement to the notification's benefits. This issue highlighted the importance of understanding the specific requirements for claiming exemptions under notifications.

Applicability of the notification to goods supplied to UNICEF projects:
The crux of the matter revolved around whether goods supplied to UNICEF projects indirectly, rather than directly to UNICEF, were covered under the notification. The Tribunal clarified that the notification encompassed goods supplied to projects approved and financed by organizations listed in the annexure, certifying that the goods were intended for official use. By reviewing the certificates, purchase orders, and UNICEF's instructions, the Tribunal concluded that the appellants were indeed eligible for the exemption under the notification, thereby allowing the appeals and providing consequential relief to the appellants.