2005 (9) TMI 209 - AT - Central Excise

Tribunal Upholds Exemption for Aluminum Conductors in Favor of M/s. Deepak Cables

DEEPAK CABLES (INDIA) LTD. Versus COMMISSIONER OF C. EX., BANGALORE

The Tribunal set aside Order-in-Original No. 10/2003 BNG II, ruling in favor of M/s. Deepak Cables (India) Ltd. in E/101/2004. The Revenue's challenge to ... Exemption - Project financed by World Bank - Demand - Limitation Issues involved:Appeal against Order-in-Original No. 10/2003 BNG II dated 28-11-2003 regarding exemption under Notification No. 108/95-C.E. for Aluminum Conductors supplied to M/s. Power Grid Corporation financed by the World Bank.Analysis:E/101/2004:The case involved M/s. Deepak Cables (India) Ltd. supplying A.C.S.R. Moose/Bermis Conductors to M/s. Power Grid Corporation under a World Bank-financed project. The Revenue challenged the exemption under Notification No. 108/95, leading to a demand of Rs. 5,88,94,635/- and imposition of penalties. The appellants argued that they were entitled to the exemption based on a certificate signed by the Executive Director of the Project Implementation Authority and countersigned by the Additional Secretary, Ministry of Power. The certificate indicated the goods were intended for use by Power Grid Corporation and financed by the World Bank, fulfilling the conditions of the exemption notification. The Tribunal found that the appellants acted in good faith based on the certificate, and any delay in World Bank financing did not negate their entitlement to the exemption. The Tribunal set aside the Order-in-Original, concluding that penal action against the supplier was premature and unwarranted.E/1291/2004:As the Order-in-Original was set aside in E/101/2004, the appeal filed by the Revenue became irrelevant and was dismissed accordingly.This comprehensive analysis covers the issues involved in the legal judgment, providing a detailed breakdown of the arguments, findings, and conclusions for each appeal.