Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2016 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (10) TMI 869 - AT - Central ExciseEligibility for exemption under N/N. 6/2006-CE dated 1.3.2006 (Sl.No.19) - manufacture of bus bodies - buses cleared to M/s. Delhi Metro Railway Corporation (DMRC) - Held that: - The wordings of Entry No.90 in the Notification is specific and the appellant’s claim that bus is an equipment cannot be accepted even by plain reading. The Original Authority also relied on the Board’s letter dated 14.09.2004 addressed to the DMRC enclosing two lists of items, for which exemption was sought by the DMRC. The Original Authority referred to the proceedings of the Empowered Committed on Delhi MRTS Project. The Original Authority, after examining in detail, the background of DMRC’s claim with the Department of Revenue recorded that bus cannot be even by implication considered as “equipment” It was also recorded that if the intention is to include the bus for exemption, the same could have found place in the original list of items submitted by the DMRC for consideration before the issue of the exemption notification - buses for passengers cannot be considered as an “equipment” within the scope of Entry No.90 of the above said notification. The appellant’s claim for such exemption is not tenable. Imposition of penalty - Held that: - the penalties imposed on the main appellant as well as the Director of the DMRC cannot be sustained. We find no justification for imposing equal amount of penalty on the main appellant in terms of Section 11 AC. The main appellant produced a certificate given by DMRC and claimed the exemption. DMRC gave such certificate based on their understanding of the claim for exemption. No fraudulent intent could be brought out in these transactions. DMRC is a Government Promoted Utility Organization and considering the facts and circumstances of the case, we find no justification in the imposition of equal penalty on the appellant and personal penalty on the Director of DMRC. Accordingly, we set aside the penalties imposed on them. Appeal disposed off - decided partly in favor of appellant.
|