2016 (11) TMI 272

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....been intimating in advance the clearances to be made to BEL to the department and also reflecting those clearances in the monthly ER 1 Returns showing availment of exemption.  Present appeal relates to denial of exemption for the clearances made between Dec 2009 to Feb 2011, by Notice dated 04.09.2013, invoking extended period interalia proposing demand of Rs. 1,24,09,283/- with interest, along with imposition of penalties. Notice was issued on the following grounds: (a) Availment of exemption is not applicable to the supplies made by the appellants, and is available only to those goods manufactured by BEL, but not to the vendors; (b) Benefit of exemption under Notification No. 63/95-CE dt. 16.03.1995 cannot be extended as per Board....

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....ment Ld. AR  Sh. P.S. Reddy submitted that the Board had issued Circular in December 2009 wherein it was clearly indicated that the exemption benefit under 63/95 is applicable only for goods manufactured by units, interalia, BEL and not by vendors. 4.  We have considered the submissions made by both sides. 5.  The Notification No. 63/95 clearly restricts the exemption in serial no. 2 thereof  only to  manufacture of goods interalia, BEL  for supply  to Ministry of Defence for official purposes. There is no extension of this benefit to vendors or job workers. The appellants argument that they started availing exemption after clarification by a department officer will not help their case. An erroneous cla....