2004 (10) TMI 179 - AT - Central Excise

Summary

Issues: Interpretation of Notification No. 108/95-C.E. regarding exemption from duty for "cover paper" supplied to UNICEF project.

In this judgment by the Appellate Tribunal CESTAT, Bangalore, the issue at hand was the eligibility of the respondents for the benefit of exemption from duty on "cover paper" cleared to M/s. Nikhil Offset for supply to a UNICEF project as per Notification No. 108/95-C.E. The Commissioner (Appeals) had previously ruled in favor of the respondents, but the revenue appealed, arguing that the certificate required under the notification should have been in the name of the respondents themselves, not in favor of Nikhil Offset, to satisfy the conditions of the notification.

The Tribunal considered the arguments presented by both sides. The revenue contended that the manufacturer seeking the exemption should have the certificate issued to them by the prescribed authority, while the respondents' counsel emphasized that the key requirement was whether the goods were intended for official use by the UN or an international organization or for supply to a project approved by the Government of India. After careful consideration, the Tribunal agreed with the revenue's interpretation, stating that the benefit of the notification is not available to the respondents. Consequently, the respondents were held liable to pay the duty amount for the clearances of paper cover during the disputed period, amounting to Rs. 47,028. However, the Tribunal also ruled that there were no grounds for imposing a penalty on the respondents.

Ultimately, the appeal was partly allowed, with the Tribunal deciding in favor of the revenue's interpretation of the notification's requirements for claiming the exemption from duty.