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TMI Blog2005 (9) TMI 209X X X X Extracts X X X X X X X X Extracts X X X X ..... /s. Deepak Cables (India) Ltd. manufactured Aluminum Conductors. They supplied A.C.S.R. Moose/Bermis Conductors intended for use by M/s. Grid Corporation for Talcher-II Transmissions System which was to be financed by the International Bank for Reconstruction and Development (hereinafter referred to as the World Bank) through a loan. The appellants cleared the above mentioned goods to M/s. Power Grid Corporation at nil rate of duty availing exemption under Notification No. 108/95-C.E. dated 28-8-95 for the period between October 2000 and February 2002. Investigations by the Revenue revealed that when the goods were cleared, the financing of the project by the World Bank was only in the pipeline and has not become a reality. Hence the Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ject Implementation Authority (M/s. Power Grid Corporation of India) countersigned by the Additional Secretary, Govt. of India, Ministry of Power. In the letter, the permission of the Assistant Commissioner of Central Excise was sought to remove the goods without payment of duty. In order to appreciate the issue involved in this case, we are reproducing the ibid letter dated 1-6-2000 and the certificate as given below :- "Deepak Cables (India) Ltd. Regd. Office : 313, 3rd floor, Embassy Centre, 11, Crescent Road, Bangalore - 560 001 Tel : 2268520, 2255908 Fax : 91-80-2260396 Ref:-DCIL/2000-01/528 1 June, 2000 The Assistant Commissioner, Central Excise, Division-A, 131, Infantry Road, Bangalore-560 001. Dear Sir, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ex, R. C. Dutt Road, Vadodara - 390 007 M/s Deepak Cables (India) Limited, 313, 3rd floor, Embassy Centre, 11, Crescent Road, Bangalore - 560 001] for the supply of total order quantity of 1888 KMs. Of ACSR MOOSE Conductor, out of which only 472 KMs. of Conductor shall be supplied by M/s Deepak Cables (India) Limited, Bangalore (other Partner), vide Contract No. AC/ESI-II/Pkg-C/C-51503-L175-l/LOA/665 dated 8-2-2000. We hereby certify that the said Conductor intended for use by POWER GRID CORPORATION OF INDIA LIMITED and this is to be financed by International Bank for Reconstruction and Development (World Bank) through a Loan for HVDC TRANSMISSION SYSTEM ASSOCIATED WITH EAST - SOUTH INTERCONNECTOR-II (TALCHER-II) TRANSMISSION PROJECT. G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficate indicates that the goods are to be supplied by the appellants for use by M/s. Power Grid Corporation of India Limited and reveals that they are entitled for the exemption. The certificate also reveals that the project has to be financed by the World Bank. It is also mentioned that in case the World Bank financing fails to come through the Deemed Export benefit under Para 10.2 of the EXIM policy would be available. We want to make clear that a reading of the certificate indicates that the World Bank loan was in pipeline and not finalized. Since the certificate was produced to the Assistant Commissioner of Central Excise and the Asst. Commissioner after scrutiny of the papers felt at the point of time the appellants can clear the goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mplementing authority and countersigned by an officer not below the rank of Joint Secretary to the Government of India in the concerned line of Ministry should be produced. In the present case, as seen from the records these conditions have been fulfilled. In our view, there is nothing wrong in extending the benefit of exemption notification. It has also been stated that in case the World Bank loan fails to come through for any reason, the Deemed Export benefit would be available as if the supplies have been effected under Para 10.2 of the EXIM Policy. It is a fact that there was some delay in getting the World Bank finance for the project for want of a certificate from the Ministry of Environment. Later developments show that on account of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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