2015 (6) TMI 43

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....isposal. 2. The appellants are engaged in the manufacture of Diesel Generating Sets falling under Chapter Heading 8502 of the First Schedule to the CETA 1985. They had removed 2 Nos. of Diesel Engine to HCIL without payment of Central Excise duty by claiming exemption under Notification No.108/95-CE dt. 18.8.1995 based on the certificate issued by Rail Vikas Nigam Ltd. a Govt of India, who is the Project Implementing Authority. The appellants have been denied the benefit of Notification No.108/95-CE dt. 28.8.95. the adjudicating authority has allowed the benefit. On appeal by Revenue, Commissioner (Appeals) set aside the order and allowed the Revenue's appeal. 3. The matter was listed on 9.3.2015 when appellant was directed to pro....

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....tion by following the decisions of the Tribunal in Toyo Engineering India Ltd v. CC, Mumbai reported in 2000 (122) E.L.T. 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 than in implementation of the Golden Quadrilateral Project; considering that the goods had admittedly been used in the project and after the completion of the projects, the goods supplied to the various sub-contractors were entrusted to retain the goods supplied could not stand in the way of granting the exemption under the Notificat....

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....on 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-C.E., dated 28-8-1995 reads as follows :-  In exercise of the powers conferred by sub-section (1) of Section 5A of the Central Excises and Salt Act, 1944, (1 of 1944) read with sub-section (3) of Section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), the Central Government, being satisfied that it is necessary in the public interest ....