2006 (4) TMI 9 - AT - Central Excise

Central Excise Battery Entitled for exemption if required certificate not produced at the time of clearance Goods supplied to ISRO

Summary

Issues: Revenue's appeal against Orders-in-Appeal allowing exemption benefits for batteries under specific notifications without required certificates.

Analysis:
1. The Commissioner (Appeals) allowed the benefit of exemption under Notification 6/2002 for batteries used in certain devices listed in List 9. The Commissioner also granted exemption for FCBC Battery cleared to ISRO under Notification 10/97 despite the absence of the required certificate at the time of clearance. The Revenue challenged these decisions before the Appellate Tribunal.

2. The Tribunal examined the relevant provisions of Notification 6/2002, specifically SI. No. 237 covering non-conventional energy devices/systems listed in List 9. The batteries in question were meant for devices mentioned in List 9 (Sl. No. 16) and were considered parts consumed within the factory of production for devices specified at SI. Nos. 1-20. The Commissioner (Appeals) justified granting exemption to batteries as parts of devices in SI. No. 16, a decision upheld by the Tribunal.

3. Regarding the extension of exemption under Notification 10/97 without the required certificate, the Tribunal concurred with the Commissioner (Appeals) that denying substantial exemption benefits due to a procedural lapse would be unjustified. The Tribunal emphasized that if batteries are essential for the devices listed, they can be considered parts, supporting the Commissioner's decision. Consequently, the Tribunal dismissed the Revenue's appeal, finding no merit in challenging the Commissioner's orders.

4. The Tribunal's decision, delivered on 10.4.2006, affirms the Commissioner (Appeals)'s reasoning and upholds the grant of exemption benefits for batteries under the relevant notifications. The judgment highlights the importance of considering the necessity of components for specific devices when determining eligibility for exemption, emphasizing substantive benefits over procedural technicalities in such cases.