TMI Blog2018 (3) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... nded the validity period upto Ist day of December, 2007. December has taken the view that since the amending N/N. 1/2006-CE cause extension of validity period only upto 01.06.2006, and since there was no further notification was issued for extending the validity beyond 01.06.2006, till N/N. 40/2006-CE was issued on 21.08.2006, duty free clearance under parent N/N/. 64/95CE would not be available for the interim period. A similar issue had come up before Hon’ble Supreme Court in W.P.I.L Limited Vs. CCE, Meerut [2005 (2) TMI 137 - SUPREME COURT OF INDIA]. The facts were that pumps as well as part thereof which were used far manufacture of power pumps exempted from levy of excise duty since 1978. However, while issuing a consolidated notifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Hence appeal E/810/2008 by denial of exemption benefit and demand of duty liability. 3. Department is aggrieved the non-imposition of penalty by the adjudicating authority under rule 25 of Central Excise Rifles, 2002, hence appeal No.E/857/2008. 4. On 25.01.2018, when both these appeals came up for hearing, on behalf of assessee, Ld. Advocate Shri V.J Sankaram reiterated the grounds of appeal and also made oral and written submissions which can be broadly summarised as under: a) It is exfacie incorrect to assume that the age long exemption ceased to exist by 1.6.2006 and re-commenced on 21.8.2006. b) The basic objective in granting the exemption is that all goods required for the SAMYUKTA PROGRAMME should be duty free alw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that appeal of Department No. E/857/2008 seeking imposition of penalty may be allowed. 7. Heard bath sides and have gone through the facts: 8. The parent notification No. 64/95-CE, dt. 16.03.1995 inter-alia exemption central excise duty on all goods suplied to the programme SAMYUKTA under the Ministry of Defence, with the caveat that the exemption shah not have affect on or after the first day of December, 1999. However, the validity of the exemption was kept on being extended by various notifications as under: Sl. No Notification Number and date Date upto which exemption to SAMYUKTA programme was available Dated of issue of amending notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailable for the interim period. It however appears to be reason that the Government have continued extending validity of the parent notification on the exemption even beyond 21.08.2009, hence the intention to extend the exemption for the programme SAMYUKTA would not have ceased for the short period of 2 months. 9. A similar issue had come up before Hon ble Supreme Court in W.P.I.L Limited Vs. CCE, Meerut reported in [2005(181) ELT 359 (SC)] . The facts were that pumps as well as part thereof which were used far manufacture of power pumps exempted from levy of excise duty since 1978. However, while issuing a consolidated notification No.46/94, incorporating earlier notification dt. 01-03-1994, part of power driven pumps which all alon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icy remained as it was and view of demand being made by the Department, a representation was made by the industries and being satisfied, the Central Government issued a clarificatory Notification No.95/94 org 25-4-1994. It was not a new notification granting exemption for the first time in respect of parts of power-down pumps to be used in the factory for manufacture of pumps but clarified the position and made the position explicit which was implicit. 10. We find that the ratio of W.P.I.L. Limited judgment is applicable on all fours to the facts of the present appeal. We also find that for subsequent period i.e. 01.12.2017 to 16.03.2008 which also was not covered by notification till issue of amended notification 15/2008 CE, dt. 17.03. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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