2016 (12) TMI 985 - AT - Central Excise

Exemption under N/N. 108/95 dated 28.08.1996 - manufacturer of PCC poles, Beams and Pipes - Held that - I find that condition No.C (i) deals with where the project is implemented by the Central Government itself and condition No.C(ii) deals with the situation where the project is approved by Government of India for implementation by Government of a State/Union Territory. Accordingly, I hold that only either of the condition C(i) or C(ii) is applicable. Admittedly, in the facts of this case, the project is approved by Government of India to be implemented by the State of Madhya Pradesh through its Public Works Department and the Implementing Authorities, M.P. Road Corporation Ltd. Thus, I hold that the appellant fulfils the conditions of the said notification and the exemption is allowable to them under the facts and circumstances under Notification No.108/95 CE - appeal allowed - decided in favor of appellant-assessee.

Summary

Issues: Compliance with conditions for exemption from Central Excise duty under Notification No.108/95 dated 28.08.1996.

Analysis:
The appellant, a manufacturer of RCC Pipes, sought exemption from Central Excise duty under Notification No.108/95. The appellant supplied goods to a project under a certificate issued by the Managing Director, M.P. Road Development Corporation Ltd., stating the intended use for a specific project approved by the Government of India. However, a Show Cause Notice (SCN) was issued as the Revenue found discrepancies in the fulfillment of exemption conditions, leading to a demand for duty, interest, and penalty. The Assistant Commissioner confirmed the demand, which was upheld by the Commissioner appeals, citing the lack of evidence supporting the project's approval by the Government of India as a crucial condition for exemption.

The appellant appealed to the tribunal, arguing that the certificate from the Project Implementing Authority fulfilled all requirements for exemption under the notification. The appellant's counsel highlighted the specifics of the certificate, emphasizing compliance with the conditions outlined in the notification. The Revenue contended that the appellant failed to meet the condition requiring a certificate from the Government of India, signed by an officer not below the rank of a Joint Secretary. The Revenue argued that without this specific certification, the exemption should be denied.

The tribunal analyzed the conditions under the notification, distinguishing between projects implemented by the Central Government and those approved by the Government of India for implementation by a State or Union Territory. It concluded that in the present case, where the project was approved by the Government of India for implementation by the State of Madhya Pradesh, the appellant had fulfilled the necessary conditions for exemption. Therefore, the tribunal allowed the appeal, setting aside the impugned order and granting consequential benefits to the appellant.