2004 (7) TMI 505

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....kage for Chandrapur Thermal Power Station to M/s. Bharat Heavy Electricals Ltd. (BHEL); that BHEL started clearing the goods at nil rate of duty by availing exemption under Notification No. 108/95, dated 28-8-1995; that subsequently the Commissioner under the impugned order has confirmed the demand of Rs. 3.05 crores approx. against M/s. BHEL besides imposing a penalty of equivalent amount; that the Commission had also imposed penalty of Rs. 50 lakhs on them on the ground that the benefit of Notification No. 108/95 was not available since the Project was not financed by the World Bank as it had suspended the payment with effect from 22-10-96 and Appellants were fully aware about suspension and cancellation of loan to the project in question....

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....ty being indirect tax the incidence of the same is always passed on to the customers; that Notification No. 108/95 exempts all goods when supplied to the projects financed by the United Nations or International Organisation and approved by the Government of India provided that before clearance of the goods, the manufacturers produce before the Assistant Commissioner a Certificate from the United Nations or an International Organization that the goods are to be supplied to a project financed by this United Nations/International Organisation and the project has been duly approved by the Government of India; that the fact of project being financed or not being financed by the international organization i.e. World Bank in the present matter, wa....