TMI Blog2021 (6) TMI 670X X X X Extracts X X X X X X X X Extracts X X X X ..... turer, supplying goods against an exemption notification, poses lesser risk than an importer in recovery of duty foregone in the event of misuse. The procedural prescriptions stipulated for exemption from duties of customs are intended to neutralize that additional risk without causing undue inconvenience to the transaction. Imports are effected by the designated agency or their subcontractors for implementation of the project and, to them, prescribed certification is of easy access; the role of a manufacturer is limited to supply which precludes direct access to such certification. While the intended deployment and procurement through international competitive bidding is, doubtlessly, ascertainable at the premises of the importer, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thers Ltd, manufacturers of power driven pumps and parts of pumps , against the saddling of duty liability, amounting to ₹ 3,12,861, under section 11A of Central Excise Act, 1944, along with interest thereon under section 11AB of Central Excise Act, 1944, and imposition of penalty of like amount under section 11AC of Central Excise Act, 1944 by the original authority that was upheld in impugned order-in-appeal no. PII/RKS/5/2012 dated 2nd January 2012 of Commissioner of Central Excise (Appeals), Pune II. 2. The monetary stake in the outcome of this dispute notwithstanding, the gravitas of the proposition espoused in the orders of the lower authorities compels an elaborate evaluation on our part. More so, as the disposition of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cleared power driven pumps and parts under invoice no. 5500500641 dated 19th January 2006 and no. 5500005804 dated 30th December 2009 in fulfillment of orders from M/s Clough Engineering Ltd and M/s Paramount Ltd awarded by international competitive bidding for deployment in petroleum exploration project. The benefit of notification no. 6/2002-CE (at serial no. 301) dated 1 st March 2002 and no. 6/2006-CE (at serial no. 91) dated 1st March 2006, availed for exemption of ₹ 3,02,977 and ₹ 9884 respectively, was sought to be denied in proceedings initiated by the original authority for not having furnished documentation evidencing eligibility for such exemption which culminated in confirmation of demand and imposition of pena ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Customs Tariff and the Additional Duty leviable under Section 3 of the Customs Tariff Act when imported into India. As regards the Condition No. 29 refer to in Notification No. 21/2002, those conditions have been stipulated to be complied by the importers of goods and do not apply to domestic manufacturers. So long as the goods are exempt, the condition to be satisfied by the domestic suppliers is that they should be supplied under International Competitive Bidding which the appellant has fulfilled in these appeals. Therefore, we have to uphold the contention of the appellant and reject the contention of the Revenue. in affirming the decision of the Tribunal in Kent Introl Pvt Ltd v. Commissioner of Central Excise, Nashik [2014 (3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... standing the portion extracted by Learned Authorized Representative, is much on similar lines though the facts differed to the extent that some of the goods cleared without payment of duty had, admittedly, been mis-utilised and the Tribunal, based on those observations, immunized the supplier from being subjected to recovery proceedings. We, therefore, need not labour over the primacy of the decision relied upon by Learned Authorized Representative. 8. The scheme of exemption, intended to serve public interest by securing optimal deployment of goods and services for recovery of natural resources, enables exclusion of duties on compliance with prescribed conditions and procedures that are designed for ensuring the objective. The intent of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actors for implementation of the project and, to them, prescribed certification is of easy access; the role of a manufacturer is limited to supply which precludes direct access to such certification. While the intended deployment and procurement through international competitive bidding is, doubtlessly, ascertainable at the premises of the importer, the prescribing of certificate to be furnished eliminates such repeated verification of the threshold eligibility for each clearance of imports. Likewise, the devolution of liability on the designated agency in the event of mis-utilization is to cover the contingency that sub-contractors, liable as importer, may not be easily traceable subsequently. These procedural stipulations are facilitati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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