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TMI Blog2013 (8) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... this notification, when goods are supplied to projects financed by any organisation specified in the annexure to the notification or any international organization approved by Government of India, the goods are exempted from excise duty. For proper implementation of the exemption, the notification prescribes that a certificates issued by the concerned government authority as also the project authority should be produced before the Central Excise officer having jurisdiction over the factory from where the goods are being cleared. Appellant obtained necessary certificates from the concerned project authorities, produced it before the jurisdictional Assistant Commissioner, claimed exemption from excise duty and cleared the goods to different ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e completion of the projects financed by the International Organizations and on completion of the projects, the contractors are using these goods for their own use and for other works. (c) The supply of goods made to the 'Project' should belong to the Project Implementing Authority and should not be withdrawn at any point of time. In the instant case, the impugned goods belong to the individual contractors and not to the Project implementing authority. 4. The three SCNs were adjudicated by one combined order confirming a demand of Rs.57,29,847/- along with interest and penalty under Rule 25 of Central Excise Rules, 2002. Aggrieved by the order, applicants filed appeal with Commissioner (Appeals) who upheld the adjudication order. Aggrieve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s contention is that some of the projects are still being undertaken. He submits that when SCN does not allege specifically about any removal from the project site, such demand based on surmise is not sustainable. He further argues that once the project is complete, equipment like road rollers, fencing equipment etc. cannot be left on the road and it is only natural that these are removed from the project site. When such removal takes place after completion of the project, it cannot be considered as 'withdrawal from the project' because project itself would not exist at that point of time. Therefore, he submits that exemption claimed is within the four corners of the exemption notification and his appeal should be admitted without any pre-d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ines (supra) as stated in para 35 of the order stands overruled. Para 39 is in the nature of observation and not in the nature of issue at dispute decided. 9. Now the issue to be examined is the effect of Explanation 2 added w.e.f 01-03-2008. We are of the prima facie view that demand can be confirmed only based on a specific finding that the goods were removed outside the project and not based on a probability that goods can be removed out of the project because the exemption is not with reference to the nature of goods. In the present case the demands are confirmed based on a statement to the effect that some of the machineries may have been removed after completion of the project. There is no distinction made in the notification with re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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