2016 (6) TMI 1052

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....there was denial of exemption of excise duty on such goods for which appellant is aggrieved. The project was recognized by specified agencies and appropriate exemption has been granted to that principal contractors in respect of the goods, exempting that form duty. By virtue of the notification No. 108/95-CE, dated 28.08.1995 the goods enjoy duty exemption but not the person who uses the goods in the project. 2.  It was further submitted that the present appellant was the sub-contractor of the implementing agency who executed the project on behalf of the specified funding agency. Therefore, there cannot be any misconstruction of the grant of the notification when the Hon'ble  Madras High Court in the case of Commissioner of Cen....

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.... duty, if used in the project funded by specified agencies. The present appellant was supplier of the goods to the principal agency who used the same in implementation of the specified project. Such fact remained undisputed by revenue. 7.  While the factual situation is as above, there was difference between Revenue and the appellant on the ground that the goods supplied were not covered in the specified list approved by the funding agency and also the appellant was stranger to the project. We are clear that the goods meant for use in the project were entitled to the duty exemption but not the person who used the goods. That is the test to arrive at the applicability of the notification. When the goods were meant for use in the proj....

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....ing 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-C.E., dated 28-8-1995 reads as follows :- "In exercise of the pow....