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TMI Blog2005 (11) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... used in laying false ceiling and humidification plant. 2.According to the assessee, it has used fiber glass and aluminum sheets for providing false ceiling in humidification plant to obtain better efficiency of the plant. He, therefore, procured the aforesaid goods without payment of Duty relying on the notification No. 1/95 C.E., dated 4-1-1995 by issuing CT-3 certificate. 3.The Assistant Commissioner of Central Excise issued show cause notices dtd. 5-9-2001 calling upon the assessee to show cause against the proposed levy of Excise Duty on the aforesaid goods, which according to the assessing officer was leviable and did not fall within the provisions of Exemption Notification No. 1/95 issued under Section 5A of the Central Excise Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods In question. Hence, this appeal. 7 In this appeal following substantial questions of law were framed : 1. "Whether in the facts and circumstances, in view of the finding recorded by the Tribunal that the false ceiling is provided in location where humidification plant is operational so as to ensure that the efficiency of the plant is achieved and that it is a work of redesigning besides where the plant can work with efficiency, the end conclusion of the Tribunal that fiber glass and aluminum sheets used in establishing the humidification plant were not capital goods in respect of which the appellant could avail the benefit of purchasing such material without payment of duty? 2. Whether in the facts and circumstances of the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ......... (ii)..................... (iii)............. (b) the user industry brings the excisable goods directly from the factory of manufacture or from the warehouse and uses them for purposes as specified in clauses (a) to (c) above solely for export; (c).................. (d) the user industry executes a bond with the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise (hereinafter referred to as Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise in the prescribed form and for such sum as may be specified by that Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise for the purpose of accountal of the receipt, storage and utilization of suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epend upon what use they have been put in. The notification also lays down conditions of do's and don't and also requires assessee to execute a bond in terms of Clause (d). 12.The condition appended to the notification requires that the user industry executes a bond with the concerned authority in the prescribed proforma and for such sum as may be specified by that authority for the proper accounting of the receipt, storage and utilization of such goods and to fulfil the export obligations and to comply with the conditions stipulated in the said notification and the Export and Import Policy and binds itself to pay on demand an amount equal to the Duty leviable on the goods and interest at the rate of fifteen per cent annum on the said Dut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to be used in connection with manufacture of end-product by 100% export oriented undertaking for the purpose of export outside India. It is of much wider canvass. Therefore, if there is connectivity between bringing in of capital goods with the activity of manufacture of end product or its packaging in the sense that it helps in smooth or efficient running of activity of manufacture and packaging of end product, the condition to avail the exemption must be considered to have been fulfilled and the assessee is entitled to avail the benefit of exemption. 14.We are not concerned with other conditions provided in the notification as no such breach of any other condition have been pointed out by the assessing officer in its show cause notic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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