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2018 (1) TMI 764 - AT - Central ExciseBenefit of N/N. 108/1995-CE dated 28.08.1995 - supplies to projects financed by the World Bank, Asian Development Bank or International Organization approved by the Government of India - denial of benefit on the ground that specified goods were cleared to the contractors of the project instead of the Project Authorities. Whether the denial of exemption on the ground that the impugned goods are supplied to the contractor of the project instead of the Project Authorities is correct or not? - Held that: - The Hon’ble High Court in the case of The Commissioner of Central Excise Versus M/s. Caterpillar India Pvt. Ltd. [2013 (7) TMI 244 - MADRAS HIGH COURT], held that the use of the phrase supply to the projects financed by United nations or International Organization and approved by the Government of India clearly shows that the condition for grant of exemption is supply of the goods towards the project. That since the conditions are satisfied, the benefit of exempton cannot be denied stating that the goods were supplied to the contractor - the denial of exemption benefit on the ground that the goods were cleared to contractors cannot sustain. Denial of exemption on the basis of Explanation 2 inserted in N/N. 108/1995-CE w.e.f. 01.03.2008 - Held that: - The appellant has complied with the condition of furnishing certificate of designated authorities. The department allowed clearance of the goods without any murmur on the validity of the certificate. The department cannot later turn around to deny exemption by interpreting Explanation 2 to the effect that the exemption is not available if the goods are withdrawn from project site. Denial of exemption is unjustified - appeal allowed.
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