TaxTMI 
TaxTMI 
2013 (7) TMI 244
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....he "Project" qualify as supplies to the Project to avail exemption under Notification No.108/95 as amended ? 2. Whether mere use of the impugned goods for a short duration by the contractors in execution of the "Project" made them qualify for the exemption under Notification No.108/95 C.E., when the goods were not "supplied" either to the Project or to the concerned International Organisation funding the Project but were supplied to the individual contractors who own these goods and not in any way under obligation to the "Project Authority" to use the goods in execution of the "Project" ?" 2. It is seen from the order of the Authorities below that the respondent herein are manufacturer of variety of earth-moving equipment and some of thei....
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....en to the project implementing authority, thus, the demand raised proposal was confirmed. Apart from this, penalty of Rs.25,00,000/- (Rupees Twenty five lakhs only) under Rule 25 of Central Excise Rules, 2002 was also ordered. 6. Aggrieved by this, the assessee went on appeal before the CESTAT, who agreed with the assessee's contention by following the decisions of the Tribunal in Toyo Engineering India Ltd Vs. CC, Mumbai reported in 2000 (122) ELT 315. The Tribunal pointed out that it was not the case of the Department that the goods had not been supplied to the projects financed by the International Organisation. The CESTAT further pointed out that there is nothing on record to show that the goods were used in any other project other tha....
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.... Project Implementing Authority, the fact that the machineries were not given directly to the project implementing authority but given to the agency executing the work in fact cannot go against the assessee's claim. Thus ultimately, as the machineries had been put in use by the sub-contractors, who were given the job of execution the claim for exemption cannot be denied. The use of the phrase 'supplied to the projects financed by the said United Nations or an International Organisation and approved by the Government of India' clearly shows that the condition for grant of exemption is supply of the goods towards the project and nothing beyond. The extract of the Notification No.108/95-CE dated 28.08.1995 reads as follows:- " In exercise of ....