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2012 (7) TMI 838 - AT - Central ExciseDenial of exemption from excise duty under S. No. 91 of Notification No. 6/2006-C.E., dated 1-3-2006 - Non production of certificate to show that the person to whom they were supplying the goods could have imported goods free of customs duty as per the provisions of Customs Notification No. 21/2002-Cus. at Sl. No. 217 - whether exemption can be denied for the reason that the necessary certificate has not been produced before clearance of the goods - Held that:- there is a justifiable reason to hold so because there can be some doubt about the time of production of certificate for excisable goods because the condition comes through adaption of condition prescribed in a customs notification. This case involves a substantial right of the appellant to claim an exemption intended for import substitution at competitive prices we are of the view that the exemption cannot be denied for the reason that the certificate is produced later. We have not verified the certificates in detail. We are remitting the matter to the adjudicating authority to cause verification whether the certificates produced later meet the requirement of the notification. Exemption is available only in cases where necessary certificates to ensure its proper end-use is produced which has been done by the appellant only in the case of supplies to Reliance Industries Ltd. Oil India is refusing to give certificate that the goods were used for the specified purpose and the appellant has not made any effort to get such certificate from Jindal Power Ltd. So the inference is that the goods were not used for the purpose for which exemption is granted and the exemption is claimed for the sole reason that it fits into the description of goods as specified under S. No. 15 of list 12 of Customs Notification 21/2002-Cus. When exemption is claimed without satisfying the conditions of the notification we are of the view that the demand invoking extended period of time will be maintainable and appropriate penalty will be leviable - exemption is extended in cases where the appellant is able to produce the necessary certificate as prescribed in the notification and explained above. The appellant shall produce such certificates before adjudicating authority for verification within 30 days of receipt of the order. In other cases duty demand is confirmed along with interest and penalty with option to pay 25% of the duty amount as penalty within 30 days of receipt of the order - Following decision of CCE v. Harish Silk Mills Pvt. Ltd. [2010 (2) TMI 494 - GUJARAT HIGH COURT] - CCE v. Dynaspede Integrated Systems Ltd. [2001 (8) TMI 231 - CEGAT, CHENNAI] - Decided partly in favour of assessee.
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