TMI Blog2008 (5) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... ri B.L. Narsimhan, Advocate, for the Appellant. Shri D.S. Negi, SDR, for the Respondent. [Order per : Archana Wadhwa, Member (J)]. - After hearing both the sides, we find that the appellants are engaged in the manufacture of coated M.S. pipes and during the relevant period, cleared the said goods to projects, which were funded by Asian Development Bank, in terms of Notification No. 108/95-C.E. dated 28-8-1995. There is no dispute about the availability of the said notification. However, the proceedings stand initiated against the appellants for confirmation of an amount of 10% of the value of the goods cleared, in terms of provisions of Rule 6(3) of the Cenvat Credit Rules, 2004 on the ground that the appellant has not maintained s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,33,846/- in terms of sub-rule (3) of Rule 6 of the Cenvat Credit Rules, 2004 read with Section 11A of the Act along with confirmation of interest. He has also imposed penalty of identical amount in terms of Rule 15 of the Cenvat Credit Rules, 2004. 2. After hearing both the sides, we find that in terms of Cenvat Credit Rules, an assessee is required to maintain separate records in respect of inputs used in the manufacture of exempted goods and dutiable goods. In case such an option is not being availed by an assessee, he is required to pay an amount of 10% of clearance value of the exempted goods at the time of clearing the said goods from the factory. However, the above provisions i.e. either maintenance of two separate records or pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced by the Asian Development Bank whereas for the purposes of the Modvat exemption, the said Asian Development Bank cannot be considered to be an international organization, as defined in the explanation attached to the said Notification. We note that preamble of the said Notification is to the effect that the Central Government exempts all goods supplied to the United Nations or an international organization for their official use or supplied to the projects financed by the said United Nations or an international organization and approved by the Govt. of India, from the whole of duty specified therein. Proviso to the said Notification as contained in provisos (a), (b) and (c) are mere in the nature of procedures required to be adopted when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-rules and (1), (2), (3) of Cenvat Credit Rules are not applicable to the goods supplied to such projects. Consequently, the demand of duty against the appellants becomes unsustainable. 4.1 Apart from the above, we also note that the definition of international organization as contained in the said Notification is to the effect : "International organization" means an international organization to which the Central Government has declared, in pursuance of Section 3 of the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), that the provisions of the Schedule to the said Act shall apply. 4.2 Article-II of the Schedule to the United Nations (Privileges and Immunities) Act, 1947, Section 8 relates to the claim of ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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