2004 (4) TMI 176 - AT - Central Excise

Summary

Issues:
1. Denial of benefit of Notification No. 198/87-C.E. by the Commissioner of Central Excise, New Delhi.
2. Dispute over whether goods manufactured by the appellant are marketed by or with the assistance of the Khadi and Village Industries Commission (KVIC).

Analysis:
Issue 1: The appellant appealed against Order-in-Original No. 9/2003 disallowing the benefit of Notification No. 198/87-C.E., dated 28-8-1987 by the Commissioner of Central Excise, New Delhi. The Notification exempts goods classifiable under Chapter Heading 94 from central excise duty if they are genuine products of a village industry marketed by or with the assistance of KVIC. The appellant contended that they met the conditions by producing a certificate from KVIC, which was not disputed by the Revenue. However, the benefit was denied on the grounds that the goods were not marketed by KVIC.

Issue 2: The Revenue argued that there was no evidence to prove that the goods manufactured by the appellant were marketed by them or by KVIC. The appellant presented a registration certificate from KVIC confirming their compliance with KVIC's principles and receiving financial and marketing assistance under KVIC schemes. The KVIC, in response to Revenue's inquiry, confirmed the registration of village industries and the financial assistance provided to the appellants. The Notification requires goods to be marketed by or with the assistance of KVIC, and the appellant demonstrated that their products were genuine village industry goods marketed with KVIC's help. The Revenue did not dispute the genuineness of the certificate. Thus, the Tribunal found that the denial of the benefit based on the goods not being marketed by KVIC was unsustainable, setting aside the impugned order and allowing the appeal.