2008 (4) TMI 144 - AT - Central Excise

Interpretation of Notification No.108/95 which grants exemption to excisable goods when supplied to United Nations or international organizations for their official use subject to production of certificate before the Assistant Commissioner goods supplied to UN is not disputed by department hence benefit of notification cannot be denied mere for delay in production of certificate about their usage revenue s appeal dismissed

Summary

Issues: Interpretation of Notification No.108/95 for exemption to excisable goods supplied to international organizations.

In the judgment by the Appellate Tribunal CESTAT, Ahmedabad, the issue revolved around the interpretation of Notification No.108/95, which grants exemption to excisable goods when supplied to United Nations or international organizations for their official use, subject to the production of a certificate before the Assistant Commissioner. The Commissioner (Appeals) had ruled in favor of the assessee, stating that the benefit cannot be denied solely based on the belated submission of the certificate. The Tribunal supported this view, emphasizing that the intention of the notification was to ensure that goods supplied to international organizations are exempt from excise duty, and the timing of certificate production should not be a reason to deny the benefit.

Another aspect of the judgment involved two appeals filed by M/s Unitech Ltd., where the benefit of the notification was denied because the certificates were produced after the goods were removed and were issued in the name of the supplier, not the manufacturer. The Tribunal referred to a previous case involving M/s Hindustan Colas Ltd., where it was established that the purpose of the certificate was to ensure that duty-free materials were indeed used for the specified project funded by the World Bank. The Tribunal clarified that the certificate did not need to be in the name of the supplier and that the notification aimed to ensure the end-use of materials in World Bank-funded projects.

In conclusion, the Tribunal rejected the Revenue's stand in the case of the Commissioner of Vadodara and allowed the appeals filed by Unitech Ltd., providing consequential relief to the appellant. The judgment highlighted the importance of interpreting notifications in a manner that upholds the intended benefits for parties involved in international transactions.