2019 (5) TMI 869 - AT - Central Excise

Appellant entitled to customs duty exemption under Notification No. 06/2006-C.E, aligning with legal precedents.

M/s Sandvik Asia Limited Versus C.C.E. & S.T. -Ahmedabad-iii

M/s Sandvik Asia Limited Versus C.C.E. & S.T. -Ahmedabad-iii - TMI Issues:- Interpretation of Notification No. 06/2006-C.E regarding exemption conditions.- Applicability of conditions for custom exemption to indigenously manufactured goods.- Dispute over whether the appellant is entitled to exemption under Notification No. 06/2006-C.E.Analysis:1. Interpretation of Notification No. 06/2006-C.E: The case involved the appellant claiming exemption under Notification No. 06/2006-C.E. The Revenue denied the exemption, citing non-fulfillment of condition no. 19 related to customs duty exemption. The appellant argued that the goods supplied were exempted from customs duty under a specific notification, fulfilling the conditions of Notification No. 06/2006-C.E. The Tribunal analyzed the conditions and held that the appellant met the requirements of the notification, emphasizing that the exemption condition was related to customs duty exemption when imported into India.2. Applicability of conditions for custom exemption to indigenously manufactured goods: The appellant contended that conditions applicable for custom exemption should not be imposed on indigenously manufactured goods supplied within India. They relied on legal precedents supporting this argument, emphasizing that conditions for excise duty exemption on indigenously manufactured goods should not be equated with custom notification requirements. The Tribunal agreed with this interpretation, highlighting that the conditions for customs duty exemption were specific to imported goods and should not be applied mutatis mutandis to domestically supplied goods.3. Dispute over entitlement to exemption under Notification No. 06/2006-C.E: The core issue revolved around whether the appellant was entitled to exemption under Notification No. 06/2006-C.E. The Tribunal reviewed the notification's conditions, specifically condition no. 19, which required goods to be exempted from customs duties when imported into India. By analyzing legal judgments and the specific circumstances of the case, the Tribunal concluded that the appellant's supplies met the conditions of international competitive bidding and customs duty exemption, thereby entitling them to the exemption under Notification No. 06/2006-C.E. The impugned order denying the exemption was set aside, and the appeal was allowed in favor of the appellant.