2025 (3) TMI 189 - AT - Central Excise

Benefit of N/N. 63/1995-CE dated 16.03.1995 to the vendors who supply goods to the enlisted companies/organisations in the Notification - HELD THAT - The Tribunal in the case of Vulcan Gears Vs. Commissioner of C. Ex. 2010 (5) TMI 781 - CESTAT AHMEDABAD held that the Tribunal while deciding in favour of the appellant took note of the Circular issued by the Board in respect of Notification No. 184/86 which is the precedent Notification to Notification No. 63/95-CE. In Circular vide F. No. 213/18/91-C.Ex.6 Circular No. 5/92 dated 19-5-1992 and another letter from Ministry of Finance F. No. IV/16/4/2003 dated 7-11-2003 it has been clarified that the exemption will be extended to all job workers and vendors supplying inputs required by BEML for manufacture of finished goods supplied to Ministry of Defence. The appellant has relied on the case laws mentioned wherein it is held that the beneficial Notification should be given effect retrospectively and oppressing Notification should be given effect prospectively. The appellant has paid duty on the goods supplied to BEML from November 2009 after the issue of clarification by the Board Vide Circular F. No. 110/32/2009-CX-32 dated 27.10.2009. The appellant contended that the period involved in this case is from June 2009 to October 2009 i.e. before the issue of the clarification by the Board hence they have contended that they are eligible for the benefit of Notification No. 63/1995-CE in view of their above submissions and the decisions of the Hon ble Apex Court and the Tribunals. Appeal allowed.

Summary

The issues presented and considered in the legal judgment are as follows:1. Whether the benefit of Notification No. 63/1995-CE dated 16.03.1995 is available to vendors supplying goods to enlisted companies/organizations.2. The interpretation and application of Circular F. No. 110/32/2009-CX-3 dated 27.10.2009 in relation to duty exemptions.3. The retrospective or prospective application of beneficial versus oppressive Circulars issued by CBEC.The detailed analysis of the issues is as follows:Issue 1: Benefit of Notification No. 63/1995-CE- Relevant legal framework and precedents: The appellant claimed exemption based on instructions from the Commissioner of Central Excise dated 07.11.2003.- Court's interpretation and reasoning: The Tribunal referred to precedents such as Vulcan Gears case and PSG & Son's Charities case, which supported extending the benefit of the notification to vendors supplying goods to enlisted organizations.- Key evidence and findings: The Tribunal noted the existence of instructions from the Central Excise and held that the appellant was eligible for the exemption.- Application of law to facts: The Tribunal applied the principles established in previous cases and found in favor of the appellant.- Treatment of competing arguments: The Revenue argued for a strict interpretation of the notification, citing the Commissioner of Customs, Mumbai Vs. M/s. Dilip Kumar and Company case.- Conclusions: The Tribunal ruled in favor of the appellant, allowing the appeal and providing consequential relief.Issue 2: Interpretation of Circular F. No. 110/32/2009-CX-3- Relevant legal framework and precedents: The appellant argued for the prospective application of the circular.- Court's interpretation and reasoning: The Tribunal considered the appellant's argument in light of previous judgments supporting retrospective application of beneficial circulars.- Key evidence and findings: The Tribunal noted that the appellant had paid duty on goods supplied after the issuance of the circular.- Application of law to facts: The Tribunal applied the principles of retrospective versus prospective application of circulars.- Conclusions: The Tribunal found the impugned order untenable and set it aside, allowing the appeal with consequential relief.Significant Holdings:- The Tribunal held that the benefit of Notification No. 63/1995-CE dated 16.03.1995 is available to vendors supplying goods to enlisted companies/organizations.- The Tribunal emphasized the retrospective application of beneficial circulars and set aside the impugned order.In conclusion, the Tribunal ruled in favor of the appellant, allowing the appeal and providing consequential relief based on the interpretation of relevant legal frameworks, precedents, and the application of law to the facts presented in the case.