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TMI Blog2017 (8) TMI 1268X X X X Extracts X X X X X X X X Extracts X X X X ..... Dated:- 4-7-2017 - Mr. Ashok Jindal, Member (Judicial) And Mr. Devender Singh, Member (Technical) For the Appellant : Shri B. l. Narasimhan Ms. Krati Somani, Advocates For the Respondent : Shri Vijay Gupta, AR ORDER Per : Devender Singh The appellants are engaged in the manufacture of ammunition boxes on job work basis which they supply to Grey Iron Foundry, a unit of Indian Ordnance Factories, Ministry of Defence. They were availing the benefit of Notification No.70/92-CE as job worker for the Indian Ordnance Factory. They were issued show cause notice dated 4.11.2006 alleging that the packing material was not covered under the said notification and their principal manufacturer had not filed the prescribed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngg. Works Vs. CCE - 1999 (107) ELT 779 (Tri.) (iv) Bhagyanagar Services Vs. CCE - 2006 (4) STR 22 (Tri.-Bang.) He also contended that the demand was partly time barred. 3. Learned AR contended that submission of undertaking is a mandatory condition and the appellants did not submit the required undertaking before availing the notification. He contended that the packing material was not allowed under the said notification and reiterated the findings in the impugned order of the Commissioner (Appeals). 4. Heard the parties and perused the record. 5. On carefully going through the notification, which is sought to be denied to the appellant, we find that Notification No.70/92-CE excludes the following categories of packag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value of final product under Section 4 of the Central Excise Act would only arise if the goods are leviable to duty. Besides, show cause notice provides no information about the packaging material cost of which was not included in previous Financial Year. Hence, we find that the allegation of denial of benefit of notification on this count is not sustainable. As for the belated filing of the undertaking by principal manufacturer, namely, Indian Ordnance Factory, we find that M/s. Grey Iron Foundry (unit of Indian Ordnance Factories under Ministry of Defence) has actually filed an undertaking, which is on record, though it has been filed late. 7. Since the supplier of raw material (Indian Ordnance Factories) has submitted an undertakin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be extended to the respondent with effect from the date on which the application for grant of registration was made by it before the competent authority. 35. The essentiality certificate, thus, must be treated to be a proof of the fact that the importers have fulfilled the conditions enabling them to obtain the benefit under the exemption notification. 36. The principles as regard construction of an exemption notification are no longer res integra; whereas the eligibility clause in relation to an exemption notification is given strict meaning wherefor the notification has to be interpreted in terms of its language, once an assessee satisfies the eligibility clause, the exemption clause therein may be construed liberally. An elig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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