Excise Exemption Benefit Cannot Be Denied for Missing Nodal Ministry Certificate Alone

GE T & D India Ltd Vs Commissioner of GST & Central Excise (CESTAT Chennai)

The case before the Customs, Excise and Service Tax Appellate Tribunal concerned whether non-production of a certificate from the Nodal Ministry could justify denial of exemption under Notification No.108/95-CE.

The appellant, a manufacturer of SF6 Gas Circuit Breakers, had claimed exemption and availed NIL duty for specified goods supplied to a project. During audit, the Revenue observed that the appellant submitted a certificate from the Project Authority (Chief Engineer, Karnataka Electricity Board) instead of the Nodal Ministry. A show cause notice was issued, and although the adjudicating authority dropped the demand, a penalty was imposed. The Revenue appealed, and the first appellate authority allowed the Revenue’s appeal, leading to the present proceedings.

The Tribunal noted that the issue had already been settled by the Madras High Court in a prior decision, which was affirmed by the Supreme Court. In that case, it was held that exemption could not be denied when goods were supplied to eligible projects and used accordingly, even if procedural aspects were not strictly complied with. The High Court emphasized that the essential requirement was supply of goods to the specified project and their use therein, and not the manner of documentation.