2018 (11) TMI 414 - AT - Central Excise

Clearance of uninterrupted power supply systems to M/s. BEL, Bangalore - goods cleared by BEL, procured from the appellants to ISRO, were made for implementation of Tele Education through EDUSAT programme - N/N. 10/97-CE dt. 01/03/1997 - Held that - The appellants having produced the certificate to the required extent are entitled for exemption contained in the said notification - Tribunal in the case of Featherlite Products Pvt. Ltd. Vs. CCE, Bangalore-III 2006 (8) TMI 453 - CESTAT, BANGALORE held that goods supplied under the certificate issued by the competent authority laying down that the same are required for research purposes are required to be extended the benefit of the notification - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Duty exemption under Notification No.10/97-CE.
2. Suppression of facts leading to duty demand.
3. Time-barred demand.
4. Validity of certificate issued by ISRO.
5. Interpretation of conditions under Notification No.19/97 for duty exemption.

Analysis:
1. The appeal challenged Order-in-Appeal No.126/2009, where M/s. Electronics & Controls Power Systems cleared goods to BEL under duty exemption but faced duty demand by the Department. The Commissioner(Appeals) confirmed duty and penalty, citing suppression of facts and a non-limitation period start from audit date.

2. The appellant argued the demand was time-barred, having followed ISRO's certificate for duty exemption under Notification No.10/97-CE, thus not contravening any provisions.

3. The Department, represented by the Assistant Registrar, reiterated the findings of the original order and the appeal.

4. The Tribunal analyzed the conditions under Notification No.19/97, requiring a certificate from specific research institutions for duty exemption. The ISRO certificate produced by the appellants was found valid, entitling them to the exemption benefits, as per precedents like Featherlite Products Pvt. Ltd. Vs. CCE, Bangalore-III and Inductortherm (India) Pvt. Ltd. Vs. CCE, Ahmedabad.

5. Conclusively, the Tribunal allowed the appeal, emphasizing the validity of the ISRO certificate and the binding nature of such certificates for duty exemption under the relevant notification. The Department's failure to question the certificate's authenticity led to the benefit being extended to the appellants.