TaxTMI 
TaxTMI 
2010 (11) TMI 924
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....nal has decided the case on merits and allowed the appeal of the Revenue by imposing penalty on the respondent. 2. The facts of the case in brief are that the respondent has entered into an agreement with West Bengal State Electricity Board (in short WBSEB) to supply certain items manufactured by them to various State Electricity Boards. As per the agreement, the WBSEB issued a certificate to the respondent under Notification No. 108/1995 stating that the buyer viz. WBSEB is entitled for exemption under the said Notification. Relying on the said certificate of exemption under notification, the respondent had issued invoices during the period February 2001 and May 2001. Thereafter, the department noticed that the Japan Bank for Interna....
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....pex Court in the case of UOI v. Dharamendra Textile Processors - 2008 (231) E.L.T. 3 (S.C.) and UOI v. Rajasthan Spinning & Weaving Mills - 2009 (238) E.L.T. 3 (S.C.) holding that once the ingredients of Section 11AC has been found, mandatory penalty under Section 11AC is to be leviable equivalent to the duty. He also submitted that in this case, the respondent has suppressed the facts from the department that the goods which they cleared for the approved project was not financed by the World Bank or any notified international organisation. The benefit of notification was available when the project was financed by the World Bank or notified International Organisation. The respondent are well aware that the Japan Bank for International Coope....
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....nt has availed the exemption for the clearance made by them to the WBSEB under Notification 108/95 wherein the exemption is available to the assessee for the projects which are approved by the Government of India or financed by World Bank or any notified International Organisation. In this case, the WBSEB has issued a certificate showing that their project has been financed by JBIC and in the last paragraph of the certificate it has been clarified that WBSEB is entitled for exemption under Notification No. 108/95 for the projects financed by JBIC. On relying this certificate the respondent made clearance of their goods to WBSEB. These facts are not in dispute. In fact, the JBIC was not an approved International Organisation to finance the p....
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.... the factual position from the Under Secretary to the Govt of India whether or not Japan Bank of International Cooperation is notified as an international organisation under the United Nations. The existence of certificate is not being denied in the show-cause notice and the order-in-original. In view of this I am in agreement with the findings of the Member (Judicial)." and this Tribunal has also held that the extended period is not invokable for demand of duty as well as no penalty can be imposed on the assessee as there is no suppression of facts. 7. In this case also, by following the decision of the Polycab Wires P. Ltd. (supra), I hold that the clearance of goods have been made by the respondent relying on the certificate issue....