2017 (1) TMI 1183 - AT - Central Excise

Benefit of N/N. 3/2004-CE dated 08.01.2004 and N/N. 108/95-CE dated 28.08.95 - denial on the ground that the certificate issued by the competent authority are not in favor of the respondent - Held that - In the N/N. 3/2004-CE nowhere it is mentioned that the competent authority is required to issue certificate in favor of the supplier of the goods. In fact, the Notification clearly specified that the certificate is to the effect that such goods are cleared by supplier for intended use - the certificate is not challenged - the respondent is entitled for benefit of N/N. 3/2004 ibid. With regard to the N/N. 108/95-CE dated 28.08.1995, nowhere it is mentioned that certificate is required to be issued by the competent authority in favor of the supplier of the goods - the respondent is entitled for benefit of exemption N/N. 108/95-CE ibid. The respondent is correctly cleared the goods by availing exemption N/N. 3/2004 and 108/95 ibid - appeal dismissed - decided against Revenue.

Summary

Issues:
- Entitlement to benefit of exemption under Notification No. 3/2004-CE dated 08.01.2004
- Entitlement to benefit of exemption under Notification No. 108/95-CE dated 28.08.95

Analysis:

Issue 1: Entitlement to benefit of exemption under Notification No. 3/2004-CE dated 08.01.2004
The appellant, engaged in the manufacture of M.S. Pipes, cleared some pipes without paying duty by availing exemptions under Notification No. 3/2004-CE and Notification No. 108/95-CE. The Revenue contended that the appellant was not entitled to the exemption as the certificates issued by the competent authority were not in favor of the appellant. The lower authorities had denied the exemption claimed by the appellant. However, the Ld. Commissioner (A) examined the exemption notifications and allowed the benefit of exemptions. The Tribunal observed that the certificate under Notification No. 3/2004-CE needed to confirm that the goods were cleared for the intended use specified in the notification, not necessarily in favor of the supplier. As the certificate was not challenged, the Tribunal held that the appellant was entitled to the benefit of the Notification.

Issue 2: Entitlement to benefit of exemption under Notification No. 108/95-CE dated 28.08.95
Regarding the benefit of exemption under Notification No. 108/95-CE, the Tribunal noted that the certificate required by this notification should certify that the goods were required for the execution of a project financed by the United Nations or an International Organization and approved by the Government of India. It was emphasized that the certificate did not need to be in favor of the supplier of the goods. As the Revenue did not dispute the validity of the certificate in question, the Tribunal concluded that the appellant was entitled to the benefit of this exemption as well.

In light of the above analysis, the Tribunal found that the appellant correctly cleared the goods by availing the exemptions under Notification No. 3/2004-CE and Notification No. 108/95-CE. Consequently, the impugned order was upheld, and the appeal filed by the Revenue was dismissed.