2009 (8) TMI 425 - AT - Central Excise

Notification No. 4/2006-C.E.- Security paper- whether the exemption is available to paper manufactured by security paper mills if a change of control made from being directly under ministry of finance to being a government corporation? Held that- the exemption is specific to the factory. As the factory specified in the notification continues to exist in our view the exemption is available to the same. It would have been a different matter if the exemption was in the name of the manufacturer which is not the case in this appeal. The ownership change from the Government department to a Government Corporation would make no difference to the claim for exemption which is in the name of the factory. As such we set aside the impugned order and allow the appeal.

Summary

The Appellate Tribunal CESTAT, New Delhi, consisting of Dr. Chittaranjan Satapathy and Shri P.K. Das, heard an appeal where the appellants sought duty exemption for security paper supplied to specified organizations for printing bank notes. The issue revolved around a change in the status of Security Paper Mills from a Government department to a Government corporation. The appellants argued that since the factory name remained the same, the duty exemption should still apply. Conversely, the Departmental Representative contended that the change in the company name invalidated the exemption. After reviewing the case and relevant Notification No. 4/2006, the Tribunal concluded that the exemption was specific to the factory and not the manufacturer. Therefore, the change in ownership from a department to a corporation did not affect the eligibility for exemption, as the factory specified in the notification remained the same. Consequently, the Tribunal set aside the impugned order and allowed the appeal.