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2023 (10) TMI 1083 - AT - Central ExciseClearances of Armoured Panels and Stretcher Assembly to HAL, Bangalore - Duty exemption benefit of Notification No. 63/1995-CE dated 16.03.1995 denied - allegation of the Department is that the Notification grants exemption only to the goods manufactured by these units and not for suppliers of the inputs / products by other vendors or contractors or job workers - suppression of facts or not - extended period of limitation. HELD THAT:- This exemption certificate clearly indicates (i) name and address of the supplier (ii) description of the goods to be manufactured and supplied (iii) the items that are required for the production of Advanced Light Helicopter (ALH) against the order of Ministry of Defence, Government of India, and, (iv) these goods are exempted from payment of excise duty leviable under Notification No. 63/1995-CE dated 16.03.1995. A scrutiny of the relevant Notification indicates in respect of other entries, it is specifically mentioned who has to manufacture and where to be utilized. The entries at column Nos. 4 to 7 indicate that certain specified goods are to be manufactured by M/s. HAL or other mentioned units including where they are to be used. In respect of entry No. 16 for items Pistol, Rifle and SLR falling under Chapter 93, the conditions specified include that the goods are to be manufactured by Bharat Dynamics Limited, Hyderabad and before clearance of the said goods, a certificate granting of exemption from the Deputy Secretary of Ministry of Home Affairs is required to be submitted. Whereas in the instant case there is no mention in the impugned Notification regarding who is competent to issue the above duty exemption certificate - it is opined that the Notification is deficient to this extent. It is not known how the practice of issuance of these exemption certificates by the officials of HAL came into practice. In the case of THE COMMISSIONER OF CENTRAL EXCISE BENGALURU-V VERSUS M/S. DATASOL INNOVATIVE LABS [2017 (2) TMI 1171 - KARNATAKA HIGH COURT] had held a similar issue in favor of assessee. Though the Department filed appeal against such order before the Hon’ble High Court of Karnataka, the Hon’ble High Court upheld the order of the Tribunal without rendering any finding on the question of law framed on merits of the case. Moreover, the Hon’ble Apex Court in the case of GOVERNMENT OF KERALA & ANR. VERSUS MOTHER SUPERIOR ADORATION CONVENT [2021 (3) TMI 93 - SUPREME COURT] has observed that an exemption Notification has to be read as a whole so as to give affect for the purpose for which it is issued. Time limitation - HELD THAT:- The Show Cause Notice dated 05.07.2013 was issued demanding duty for the period from 2008-2012 invoking extended period under proviso to Section 11A(1) / 11A(4) of the Central Excise Act, 1944. The appellant has cleared the impugned goods on the basis of the exemption certificates given by the officials of M/s. HAL and all the details were furnished in the invoices and in the ER-1 returns. These exemption certificates have certified that these goods are meant for ALH Project and would be used by HAL for ALH Project and would be supplied to the Ministry of Defence for their use. As such, no suppression with an intent to evade duty is attributable to the appellant. So, the demand of duty invoking extended period is not legal and so not sustainable. The appellant succeeds on merits as well as on limitation - Appeal allowed.
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