Exemption under Notification 108/95-C.E. upheld despite photocopy certificate and common certificate for multiple units.

Exemption under Notification No. 108/95-C.E. was claimed for clearances made against a certificate issued by the competent authority for the assessee's units. The absence of the original certificate at the time of removal, and use of a photocopy or a common certificate for multiple units, did not by itself establish wrongful availment where the certificate was not shown to be false, the authorised quantity was not exceeded, and no actual revenue loss was demonstrated. On that basis, insistence on separate certificates for each factory was unwarranted, and the duty demand and penalty were held unsustainable.

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Issues: Whether the assessee was entitled to the exemption under Notification No. 108/95-C.E. despite production of a photocopy instead of the original certificate and a common certificate for multiple units, and whether the duty demand and penalty could be sustained.

Analysis: The exemption was claimed for supplies made against a certificate issued by the competent authority for the appellant's units. The record did not show that the certificate was false or that the quantity cleared exceeded what was authorised. The absence of the original certificate at the time of clearance, by itself, did not establish improper availment of exemption, and no actual loss of revenue was demonstrated. In these circumstances, insistence on separate certificates for each factory and denial of exemption on the basis of a photocopy was unwarranted.

Conclusion: The demand of duty and the penalty were not sustainable, and relief was granted to the assessee.

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