TMI Blog2000 (1) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... ugned goods claiming exemption from payment of duty under Notification No. 108/95; that a show-cause notice dated 2-12-1996 was issued to them for denying the benefit of the said notification and for demanding central excise duty amounting to Rs. 62,25,991/- and for imposition of penalty, on the ground that they had not submitted a certificate before clearance of the goods to the Assistant Commissioner from the United Nations or an International Organisation that the goods were to be supplied to a project financed by the United Nations or International Organisation and the said project had duly been approved by the Government of India; that the Assistant Commissioner, under Adjudication Order dated 29-10-1997 confirmed the demand of duty an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er their credit/loan agreement; that tenders were invited for the supply of drug kit A consisting of (i) Oral Rehydration Salt (ORS), (ii) Tablet IFA (large), (iii) Tablet IFA (small), (iv) vitamin A solution and (v) Tablet Cotrimoxazole (Paediatric); that they were awarded two contracts for drug kit A under RITES letter dated 12-4-1996. 4. The learned Counsel, further, submitted that approval of the World Bank was obtained in respect of everything relating to Project Agreement; that the World Bank, under letter dated 9-4-1996 addressed to RITES mentioned that based on the information provided, they offer their no objection to the proposal to award the contracts for supply of Drug kit A to, among others, the Appellants; that this letter c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bank and approved by the Government of India, and the World Bank had given a loan to the Government of India for this project. In this connection, D.O. letter No. 15012/7/94-4IP III, dated 7th/17th April, 1995 of Under Secretary to the Ministry of Health, NOC of the World Bank dated 9th April, 1996 and 18th April, 1996 for accord of contracts and certifying that 100% factory cost was eligible for disbursement and their letter dated 4-2-1997 confirm the same . 5. He further mentioned that the grounds on which the exemption was proposed to be denied to them in the show-cause notice has been upheld in their favour by the Commissioner (Appeals); that the Commissioner has confirmed the demand on the grounds which were not raised in the notice; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he projects financed by the said United Nations or an international organisation and approved by the Government of India, from the whole of - (i) the duty of excise leviable thereon under section 3 of the [Central Excise Act, 1944] (1 of 1944); and (ii) the additional duty of excise leviable thereon under sub-section (1) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957): Provided that before clearance of the said goods, the manufacturer produces before the Assistance Commissioner of Central Excise having jurisdiction over his factory, a certificate from the United Nations or an international organisation that the said goods are intended for official use by the said United Nations or t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny appeal against this finding. We agree with the learned Advocate that the Commissioner (Appeal) has gone beyond the scope of the show cause notice in denying them the benefit of notification. It is settled law that no matter can be decided on a ground other than the grounds raised in the show cause notice. The impugned order is to be set aside on this court itself. However, we find that the Appellants have amply shown that the contracts were awarded to them for supply of drug kit A which consisted of 5 medicines and as excise duty was payable only in respect of one medicine, the benefit of notification was claimed in respect of that medicine. Secondly the expression financed by does not mean that the entire cost should be borne by the I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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