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TMI Blog2012 (12) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... anted through the mechanism of deemed export but administered through exemption notification issued - Revenue has not made any case that any of the conditions specified in the exemption notification is not fulfilled - exemption cannot be denied for the reason that sub-contractor did not take part in International Competitive Bidding - waiver of pre-deposit allowed - E/2253/2011 - 419/2012-EX(BR)(PB) - Dated:- 27-2-2012 - Ms. Archana Wadhwa, Shri Mathew John, JJ. REPRESENTED BY : Shri Amit Jain, Advocate, for the Appellant. Shri R.K. Verma, AR, for the Respondent. [Order per : Mathew John, Member (T)]. The Appellants manufactured five sets of CCTV system and cleared to M/s. BHEL during January and February 2008. They c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Director of the said Central Public Sector Undertaking ; and (c) In the case of imports by a Central Public Sector Projects, the quantity, total value, description and specifications of the imported goods are certified by the Chief Executive Officer of such project. 2. The Revenue was of the view that the Appellants did not take part in any International Competitive Bidding, nor were they approved as sub-contractors of the main contractor who took part in International Competitive Bidding. Further, Revenue was of the view that the condition stipulated in Foreign Trade Policy 2004-09 was not satisfied by the Appellants and therefore they were not eligible for exemption under Notification No. 6/2006-C.E. On that basis, a Show Cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntractor may, however, make supplies to main contractor, instead of supplying directly to designated projects/agencies. Such supplies shall be eligible for deemed export benefits as per procedure laid down in paragraph 8.4 of HBP v 1. 8.6.2 Supplies made by an Indian sub-contractor of an Indian or foreign main contractor directly to the designated projects/agencies, shall also be eligible for deemed export benefits provided sub-contractor as indicated either originally or subsequently in the contract, and payment certificate is issued by project authority in the name of sub-contractor as in Appendix 22C of HBP v 1. 4. The Appellants rely on the following decisions to support their case :- (i) Sarita Steels I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation No. 21/2002-Cus. (Sr. No. 400). Notification No. 6/2006-C.E. Sr. No. 91 only makes it possible to procure such goods locally without payment of excise duty if BHEL so desires and BHEL opted for local procurement from the Appellant. So naturally the Appellants should be eligible for exemption under Notification No. 6/2006-C.E. (Sr. No. 91). Prima facie the deemed export benefits dealt within para 8.6.1 and 8.6.2 deal with incentive granted by DGFT and not exemption granted by Ministry of Finance and there is no reason to refer to those conditions so long as they are not referred to in the notification claimed. The main point to be noticed is that relief from excise duty is not granted through the mechanism of deemed export but adminis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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