Brief of the case:
The CESTAT Mumbai in the case of CCEx vs. M/s Wartsila (I) Pvt. Ltd. held that exemption under notification no. 25/2002-CE is available the goods supplied should be used in the construction of warship of Indian Navy and in respect of such goods a certificate is produced from Indian Navy. Therefore, the notification do not require supply of goods to India Navy only.
Facts of the case:
- The assessee cleared D.G. Sets and parts thereof to M/s. Mazgaon Dock, Mumbai at nil rate of central excise duty under the provisions of Notification No. 64/95-CE dated 16-03-1995 as amended by Notification No. 25/2002-CE dated 11-04-2002.Assessee also obtained a certificate as required in the Notification from the Indian Navy.
- Show cause notice dated 09-09-2004 was issued wherein it was alleged that the exemption under the aforesaid notification available only in case of supply of the goods cleared to Indian Navy , whereas in the present case the goods was supplied to M/s. Mazgaon Dock, Mumbai and therefore wrongly claimed the exemption of excise duty.
- Considering the submission of assessee , Commissioner dropped the demand of excise duty by allowing the exemption notification No. 64/95-CE.Aggrieved revenue , is in appeal before the tribunal.
Contention of the Assessee:
The learned counsel for the assessee submitted that though the goods were supplied to Mazgaon Dock, but for the construction of warship of Indian Navy and to this effect, a certificate from Indian Navy was produced. Thus, the assessee was entitled to exemption.
Contention of the Revenue:
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