2003 (11) TMI 258 - AT - Central Excise

Tribunal grants exemption under Notification No. 108/95-C.E. for goods supplied to international projects

The Tribunal ruled in favor of the appellants, granting them the exemption under Notification No. 108/95-C.E. The decision aligned with a previous ruling, ... Exemption Issues:Interpretation of Notification No. 108/95-C.E. regarding exemption for goods supplied to a project financed by an international organization.Analysis:The case involves a dispute over the applicability of an exemption under Notification No. 108/95-C.E. to goods supplied for a specific project financed by an international organization, in this instance, the Feroze Gandhi Unchahar Thermal Power Project. The exemption requires a certificate from the nodal Ministry confirming that the goods are intended for such a project. The Assistant Commissioner had interpreted the requirement to mean that the certificate should specify the name/description of the goods to be supplied. However, the appellants argued that such a strict interpretation is impractical, especially in large projects involving numerous contractors and sub-contractors with a wide range of goods. They relied on a previous decision of the Tribunal in the case of Bindawala Electrical Industries Ltd. v. CCE, where it was held that the certificate need not specify each individual supply.Upon reviewing the submissions and records, the Tribunal found merit in the appellant's arguments. The Tribunal agreed with the appellants' contention that it is not feasible for the nodal Ministry to certify each individual supply in a project of significant scale. Citing the precedent set in the case of Bindawala Electrical Industries Ltd. v. CCE, where a similar interpretation was adopted, the Tribunal allowed the appeal in favor of the appellants, thereby granting them the exemption under Notification No. 108/95-C.E. This decision aligns with the Tribunal's earlier ruling and provides clarity on the interpretation of the exemption notification in cases involving large-scale projects financed by international organizations.