2003 (10) TMI 174 - AT - Central Excise

Tribunal Overturns Decision: Late Submission of Certificate Not Grounds to Deny Exemption, Penalty Removed.

BAJAJ TEMPO LTD. Versus COMMISSIONER OF CENTRAL EXCISE, INDORE

BAJAJ TEMPO LTD. Versus COMMISSIONER OF CENTRAL EXCISE, INDORE - 2004 (165) E.L.T. 323 (Tri. - Del.) Issues involved: Whether the benefit of Notification No. 108/95-C.E. is available to the appellant.In this appeal, the appellant, a motor vehicle manufacturer, supplied vehicles to a government project approved by the International Development Association. The appellant claimed exemption under Notification No. 108/95 but was denied by the Commissioner due to the absence of a required certificate prior to clearance of the vehicles. The Commissioner also imposed a penalty for alleged misleading actions by the appellant.The appellant later submitted the necessary certificate, countersigned by the Principal Secretary, after the clearance of the vehicles. The Appellate Tribunal considered the timing of certificate submission in light of previous judgments and held that the benefit of the Notification cannot be denied solely based on the certificate being produced subsequently. The Tribunal emphasized that the condition in the Notification should be seen as procedural, following the precedent set by previous court decisions.The Tribunal further noted that the demand for duty was time-barred as the appellant had not suppressed any facts or made wilful misdeclarations. The appellant had properly declared their exemption claim and communicated with the Assistant Commissioner regarding the same. The Tribunal concluded that the appellant had fulfilled the necessary conditions for the exemption and overturned the Commissioner's decision, allowing the appeal.