2010 (2) TMI 447 - AT - Central Excise

Exemption - The authorities below have confirmed a demand of duty on Amber Charkhas manufactured by the appellants herein, by denying exemption in terms of Notification No. 198/87 dated 28-8-87 as amended on the ground that the certificate dated 2-1-98 issued by the Director, Khadi and Village Industries Commission (KVIC), Bombay produced by the appellants, does not specifically mention that Amber Charkha is a genuine product of village industry. Held that - denial of exemption on the ground that impugned item not mentioned in the said certificate a genuine product of village industry, not sustainable. Impugned order set aside.

Summary

The Appellate Tribunal CESTAT CHENNAI ruled in favor of the appellant, setting aside a duty demand of Rs. 20,468 on Amber Charkhas. The denial of exemption under Notification No. 198/87 was deemed not legally sustainable as the charkhas were manufactured as per KVIC specifications for the development of Khadi and Village Industries. The order was pronounced on 22-2-2010.