2008 (7) TMI 698 - AT - Central Excise

'Importance of Date of Receipt in Exemption Claims: CESTAT Decision' /99CE

COMMISSIONER OF CENTRAL EXCISE, COIMBATORE Versus BENKAL TEA FACTORY

COMMISSIONER OF CENTRAL EXCISE, COIMBATORE Versus BENKAL TEA FACTORY - 2009 (233) E.L.T. 388 (Tri. - Chennai) Issues: Interpretation of Notification No. 41/99-C.E. dated 26-11-1999 regarding the date of undertaking for exemption claim.In this judgment by the Appellate Tribunal CESTAT, CHENNAI, the main issue involved was the interpretation of Notification No. 41/99-C.E. dated 26-11-1999 concerning the date of undertaking for claiming exemption. The specific question was whether the date of posting of a letter of undertaking, evidenced by a certificate of posting, could be accepted as the 'date of undertaking' for the purpose of exemption under the Notification.The respondents in the case had posted their letters of undertaking on 1-4-2000 to the jurisdictional Assistant Commissioner, as confirmed by the certificate of posting issued by the postal authorities, and the addressee received the letters on 11-5-2000. The lower appellate authority considered the date of the certificate of posting as the date of undertaking and granted the benefit of the Notification to the parties for the period 1-4-2000 to 10-5-2000. The Revenue challenged this decision, arguing that only the date of receipt of the letter of undertaking should be considered as the date of undertaking for the Notification.The Revenue relied on Final Order Nos. 1105-1132/2006 and a civil appeal dismissal by the Supreme Court in support of their case. The Tribunal heard arguments from both sides and ultimately followed the settled law on the matter. They held that the date on which the letter of undertaking was received by the Assistant Commissioner should be considered as the 'date of undertaking' for the Notification. Consequently, the respondents were not entitled to claim the benefit of the Notification for the period before that date. The decision of the Commissioner (Appeals) was overturned, and the appeals by the Revenue were allowed.In conclusion, the Tribunal's judgment clarified the interpretation of the relevant Notification and established that the date of receipt of the letter of undertaking by the Assistant Commissioner is crucial for determining the 'date of undertaking' for claiming exemption benefits under the Notification. The decision was based on established legal principles and previous rulings, ensuring consistency in the application of the law in similar cases.