2017 (7) TMI 128 - AT - Central Excise

Refund claim - benefit of N/N. 108/95 - denial on account of the certificate produced by the appellant is in respect of buses whereas the appellant is manufacturing chassis - Held that - From the certificate it is apparent that it is in respect of both viz. manufacture of chassis and body building activities done by specified body builders. In terms of the said certificate, the benefit has to be extended to chassis as well. This view is further fortified by the fact that the appellant has been permitted to clear chassis, other than 179 chassis cleared during this period, after availing exemption under N/N. 108/95 - The issue regarding unjust enrichment has not been examined by the lower authorities. The doubt regarding correlation between the goods cleared and buses supplied to BEST has not been dealt by the Commissioner (Appeals). The appeal is allowed so far as it relates to eligibility of notification to the clearance of 179 chassis cleared by the appellant - in respect of the issue of unjust enrichment and correlation, the matter is remanded to the original adjudicating authority - appeal allowed by way of remand.

Summary

Issues:
Denial of refund claim under Notification No.108/95 for chassis cleared to body builders and subsequent supply to BEST under agreement.

Analysis:
The appellant, a manufacturer, filed a refund claim for 179 motor vehicle chassis cleared to body builders for subsequent supply to BEST under an agreement. The claim was rejected for various reasons, including failure to produce correlation between the goods and buses supplied to BEST. The exemption certificate mentioned buses, not chassis, leading to denial of the claim. However, the certificate also indicated chassis manufacturing and body building activities, suggesting the benefit should extend to chassis as well. The lower authorities did not address the issue of unjust enrichment or the correlation between cleared goods and buses supplied.

Legal Provisions:
Notification No.108/95 exempts goods supplied to projects financed by international organizations approved by the Government of India. The manufacturer must produce specific certificates before clearance of goods for such projects. The certificate must confirm the goods' requirement for project execution and approval by the Government of India or a State.

Court's Decision:
The Tribunal allowed the appeal concerning the eligibility of Notification No.108/95 for the 179 cleared chassis. However, the matter was remanded to the original authority for further examination of unjust enrichment and correlation issues. The appellant was given the opportunity to provide necessary documents to establish the correlation before the adjudicating authority. The judgment was pronounced on 30.6.2017 by the Tribunal.