2023 (11) TMI 557 - AT - Central Excise

Recovery of duty alongwith interest and penalty - correctness of denial of exemption under notification no. 10/1997-CE dated 1st March 1997 (at serial no. 2) on cables supplied - HELD THAT - It would appear that the denial of the exemption was consequent to the finding that the goods supplied by the appellant, viz., cables are not scientific or technical instruments , apparatus or accessories or parts or consumables which alone are eligible. The end-use by institution otherwise eligible as well as the validity of the certification produced for compliance with the said notification, have not been disputed in the impugned order. The eligibility of cables for the benefit of notification has been decided by the Tribunal in Cable Corporation of India Ltd 2020 (2) TMI 3 - CESTAT MUMBAI holding that the appellants are eligible to avail the notifications 10/97 and 6/2006 in view of the certificates issued by the competent authority. Having held that the appellants are eligible for the exemption claim, on merits we are not going into the other issues like limitations etc. As the issue stands squarely covered, the impugned order set aside - appeal allowed.

Summary

Issues involved: Denial of exemption under notification no. 10/1997-CE dated 1st March 1997 on 'cables' supplied to specific institutions despite certification.

Summary:

The appeal by M/s Cable Corporation of India Ltd was against the recovery of duty liability, interest, and penalty under the Central Excise Act, 1944. The main issue was the correctness of denial of exemption under notification no. 10/1997-CE on 'cables' supplied to certain institutions between September 2010 and August 2011, despite certification as required by the notification.

The appellant contended that the supplies made to the specified institutions were eligible for exemption under the impugned notification, as they were made against certification. The appellant argued that the issue was covered by a previous decision of the Tribunal in their own dispute.

The denial of the exemption was based on the finding that the supplied 'cables' were not considered 'scientific or technical instruments', 'apparatus', or 'parts or consumables' as required by the notification. The end-use by the eligible institutions and the validity of the certification were not disputed. The Tribunal, in a previous case involving the appellant, had held that when a certificate was issued by the competent authority regarding the specific end-use of goods as required under the notification, the exemption cannot be denied.

Given that the issue was already settled by previous Tribunal decisions, the impugned order was set aside, and the appeal was allowed. The Tribunal found that the appellants were eligible for the exemption claim under the relevant notifications based on the certificates issued by the competent authority. Other issues like limitations were not addressed as the eligibility for exemption was established.

(Order pronounced in the open court on 11/10/2023)