2014 (1) TMI 1345 - AT - Customs

Denial of benefit of exemption Notification No. l48/94-Cus. - Failure to produce copies of the required certificates - Held that - Notification No. 148/94-Cus. itself provided for condonation of delay in submission of the certificates which the lower authorities failed to do. That is why this Tribunal remanded the matter for re-consideration, after condoning the delay in the submission of utilization of certificates, for verification of the certificates already submitted. Now the department has again rejected the benefit on a new ground that the appellant has failed to submit the certificates, which is very strange, to say the least. From the records of the case, it is abundantly clear that the appellant had submitted the distribution certificates under the cover of letters dated 29-8-1994, 22-2-1997 and 27-3-1997. The dated signature and seal of the department on the copies of these letters very clearly show that the department did receive these distribution/utilization certificates. If the department has mis-placed these certificates, the appellants cannot be blamed for the lapses/inefficiencies on the part of the department - Decided in favour of assessee.

Summary

Issues:
1. Denial of benefit of exemption under Notification No. 148/94-Cus.
2. Delayed submission of certificates.
3. Rejection of appeal by lower appellate authority.

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Issue 1: Denial of benefit of exemption under Notification No. 148/94-Cus.
The case involved a Charitable Trust appealing against the denial of exemption under Notification No. 148/94-Cus. The Tribunal, in a previous round of litigation, had remanded the matter for verification of certificates submitted by the Trust. Despite the Trust submitting the required certificates in 1994 and 1997, the original adjudicating authority once again denied the benefit based on the ground of delayed submission. The Trust argued that the denial was unjustified as they had submitted the certificates, which were acknowledged by the department. The Tribunal noted that the Trust had fulfilled the requirements, and the department's rejection based on non-submission of certificates was unfounded. The Tribunal set aside the impugned order and allowed the appeal.

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Issue 2: Delayed submission of certificates
The primary issue revolved around the alleged delayed submission of certificates by the Charitable Trust for availing exemption under Notification No. 148/94-Cus. The Trust had submitted the necessary certificates in 1994 and 1997, as required. The department's contention of delayed submission beyond the 6-month limit was addressed by the Tribunal, which had remanded the matter for reconsideration, noting that the Notification provided for condonation of such delays. The Tribunal emphasized that the Trust had fulfilled its obligation by submitting the certificates, and any misplacement by the department could not be attributed to the Trust. The Tribunal found the rejection of benefit based on delayed submission unjustified and ruled in favor of the Trust.

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Issue 3: Rejection of appeal by lower appellate authority
The lower appellate authority had rejected the Trust's appeal, upholding the denial of exemption based on the ground of non-submission of certificates. However, the Tribunal, upon careful consideration of the submissions and records, found that the Trust had indeed submitted the necessary certificates in 1994 and 1997. The Tribunal highlighted the department's failure to verify the certificates already submitted, as directed in the previous round of litigation. The Tribunal criticized the department's new ground for rejection and emphasized that the Trust should not be penalized for the department's lapses. Consequently, the Tribunal set aside the lower appellate authority's decision and allowed the Trust's appeal, disposing of the stay application as well.

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