Tribunal upholds duty payment for manufacturing transmission line towers despite initial duty exemption.

The Tribunal upheld the duty payment of Rs. 3,77,156 and interest payment from 11-5-2001 for the appellants manufacturing transmission line towers and parts, despite initial duty exemption certification under Notification No. 108/95. The Show Cause Notice issued in September 2003 for duty and interest payment was deemed timely, rejecting the time-bar argument. The appeal was dismissed on 27-9-2005 based on these findings.

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Issues involved: Interpretation of Notification No. 108/95 for duty exemption, liability to pay duty and interest, time-bar for issuing Show Cause Notice.

Summary:
1. The appellants manufactured transmission line towers and parts claiming exemption under Notification No. 108/95 initially based on World Bank funding, but later the World Bank withdrew funding. Duty was paid on imported raw materials and finished goods with credit of additional customs duty. Adjudicating authority allowed input duty credit, refrained from penalty due to initial certification, but confirmed duty short payment of Rs. 3,77,156 and ordered interest payment from 11-5-2001.

2. The advocate argued time-bar for duty and interest payment as the Show Cause Notice was issued in September 2003 for the period from March 2002 to July 2002.

3. Tribunal found the appellants liable for duty as the goods were cleared duty-free under the condition of World Bank funding, which was violated. Upheld duty payment of Rs. 3,77,156 as per notification conditions despite initial certification. Cited legal precedents to reject time-bar argument and upheld interest payment u/s 11AB from 11-5-2001.

4. The appeal was dismissed based on the findings, pronounced in Court on 27-9-2005.

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