TMI Blog2012 (7) TMI 838X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be, at the time of importation, the following, namely :- (i) a certificate from a duly authorised officer of the Directorate General of Hydro Carbons in the Ministry of Petroleum and Natural Gas, Government of India, to the effect that the imported goods are required for such petroleum operations or coal bed methane operations, as the case may be, and have been imported under a contract signed under the New Exploration Licensing Policy or the Coal Bed Methane Policy, as the case may be; and (ii) a certificate, in the case of a contract entered into by the Government of India and a Foreign Company or Companies or, the Government of India and a consortium of an Indian Company or Companies and a Foreign Company or Companies, that no foreign exchange remittance is made for the imports of such goods undertaken by the Foreign Company or Companies; (c) where the importer is a sub-contractor, he produces to the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be, at the time of importation, the following, namely :- (i) a certificate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in item 15 List 12 of the Notification which reads as (15) All types of valves including high pressure valves . He pleads that the description of the goods fits in the goods specified in List 12 at S. No. 15 and therefore the appellants are eligible for the exemption requested. 5. Notwithstanding the above contention, the appellants had submitted all documents which would have entitled their customer namely M/s. Reliance Industries Ltd. to import the goods free of customs duty. He concedes that these documents were not presented before the clearance of goods because they were under the impression that for claiming excise duty exemption there was no need to submit those documents. In the case of supplies to M/s. Oil India Ltd. they submit that they have made their best efforts to get similar certificates but M/s. Oil India Ltd. has refused to give such certificate on the pretext that no party has asked for such certificate. Since M/s. Oil India Ltd. is a public sector undertaking and the size of their supply orders were not big enough, they were not able to prevail upon M/s. Oil India Ltd. to get the necessary certificate. In the case of M/s. Jindal Power Ltd., the appellants su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otification No. 21/2002-Cus. they have to produce certain documents. So it is very obvious that those documents should have been produced for availing the excise duty exemption also. If such condition is not insisted upon it will in effect mean that goods specified under List 12 of Customs Notification No. 21/2002 if manufactured in India can be cleared without payment of duty to any purchase which will lead to misuse of the exemption and the notification cannot be interpreted in such a manner. 9. The learned AR also submits that the appellant did not take part in the International Competitive Bidding and thus they were not a contractor as envisaged in Condition No. 32 neither were they sub-contractor as envisaged in Condition No. 33 and therefore the appellants were not eligible for such exemption. 10. The Revenue also argues that where a condition is prescribed in a notification it has to be complied properly and complying with the terms of the condition at a later date is not sufficient compliance. They rely on the decision of the Tribunal in the case of Jindal Drilling and Industries Ltd. v. Collector of Customs, Mumbai - 2001 (138) E.L.T. 1335 which decision was upheld by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quired to ensure proper end-use in the case of goods manufactured in India and supplied to such contractor or sub-contractor which has not been prescribed in the excise notification. Now the option before us is to hold that excise duty exemption under such notification will not be applicable at all to any clearances by a strict interpretation of the conditions as canvassed by Revenue or to hold that excise duty exemption is to be made available subject to necessary changes read into the conditions prescribed under customs notification. The former interpretation is not justified because to our mind it is implied that the condition prescribed in Customs Notification is to be read mutatis mutandis for excise exemption. Once the latter proposition is agreed to we are of the view that the correct interpretation is that the goods should have been supplied to a contractor or a sub-contractor who has used the goods in oil exploration activity, the exemption should be available. In the present case, such condition has been satisfied in the case of supplies to M/s. Reliance Industries Ltd. though after clearance. 11. Now the question to be examined is whether exemption can be denied for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the adjudicating authority to cause verification whether the certificates produced later meet the requirement of the notification. 17. Thus we are of the view that the 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. 18. 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. 19. So we uphold the demand in respect of supplies made to M/s. Oil India Ltd. and Jindal Power Ltd. along with appropriate interest. The appellant is given an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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