TaxTMI 
TaxTMI 
2017 (1) TMI 1352
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....of Excavator Loaders and Earthmoving Machinery which have been cleared by them for projects to the contractors availing benefit of exemption Notification No. 108/95 dated 28/08/1995 for execution respective projects financed by the United Nations or an International Organisation approved by Government of India, subject to certain conditions relating to production of certificate from specified authorities. From the records, it was found that the goods were not supplied to the project or Project Implementing Authority but to the contractors who continued to the owner of the said goods even after the completion of the project. In these set of facts, the show cause notice were issued to the appellant to deny the benefit of exemption Notificatio....
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....of excise leviable thereon under section 3 of the Central Excises and Salt Act, 1944 (1 of 1944); and (ii) The additional duty of excise leviable thereon under sub-section (1) of Section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957): Provided that before clearance of the said goods, the manufacturer produces before the Assistant Commissioner of Central Excise having jurisdiction over his factory, a certificate from the United Nations or an International Organisation that the said goods are intended for official use by the said United Nations or the said International Organisation or are to be supplied to a project financed by the said United Nations or the said international orga....
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....held by this tribunal in the case of Caterpillar India Pvt. Ltd. (supra) wherein this Tribunal has observed as under: 3. It is not the case of the department that the goods have not been supplied to the projects financed by international organisations. The goods were supplied to various sub contractors for the Golden Quadrilateral Project financed by Asian Development Bank. Goods have also been used for the project. The Notification nowhere stipulates that the excisable goods supplied should be directly paid for the organisation financing the project. Since the goods have admittedly been used for the project, the question of misuse of goods for unintended purposes, as noted by the Commissioner, does not arise. The fact that after t....
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....er of the Cestat based on a factual finding and there was no material placed by the Revenue on the allegations of the possible misuse of the goods for unintended purposes by the sub contractors. Secondly, being the beneficial Notification issued in public interest and the project itself being executed fully by the contractors as per the directions of the 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 phras....