Taneja Aerospace and Aviation Limited Vs Commissioner of GST and Central Excise (CESTAT Chennai)
CESTAT Chennai held that Armour Panels and Stretcher Assembly which are parts of helicopters are eligible for exemption based on exemption certificate issued in terms of Notification No. 63/1995-CE dated 16.03.1995.
Facts-
The appellant has cleared the goods viz., Armour Panels and Stretcher Assembly which are parts of helicopters without payment of duty to M/s. Hindustan Aeronautics Ltd. [HAL] based on the exemption certificates issued in terms of Notification No. 63/1995-CE dated 16.03.1995. Such clearances were made during the period from 19.03.2009 to 29.12.2011 under invoices, which were duly reflected in their ER-1 returns.
As the duty exemption under Notification No. 63/1995-CE dated 16.03.1995 is available only for the goods manufactured by HAL and other specified units and not for suppliers to HAL, a Show Cause Notice came to be issued for wrong availment of the exemption Notification benefit invoking extended period. After due process of adjudication, confirming the demand, interest and imposition of penalty vide Order-in-Original No. 4/2014 (CE) dated 25.03.2014 issued by the Commissioner of Central Excise, Chennai, the appellant came in appeal before this forum.
Conclusion-
In the case of Commissioner of Central Excise Vs. Datasol Innovative Labs [2017 (349) ELT 13] by the Hon’ble High Court of Karnataka, allowing the exemption under Notification No. 63/1995-CE dated 16.03.1995 to the suppliers of HAL. In the said case, the Tribunal held that the assessee (Datasol) is eligible for the benefit of exemption on the basis of the certificate issued by CSIO / Aeronautical Development Agency. The issue of limitation was also held in favor of assessee.
The appellant has cleared the impugned goods on the basis of the exemption certificates given by the officials of M/s. HAL and all the details were furnished in the invoices and in the ER-1 returns. These exemption certificates have certified that these goods are meant for ALH Project and would be used by HAL for ALH Project and would be supplied to the Ministry of Defence for their use. As such, no suppression with an intent to evade duty is attributable to the appellant. So, the demand of duty invoking extended period is not legal and so not sustainable.
FULL TEXT OF THE CESTAT CHENNAI ORDER
M/s. Taneja Aerospace and Aviation Limited (the appellant herein) has challenged the Order-in-Original No. 4/2014 (CE) dated 25.03.2014 issued by the Commissioner of Central Excise, Chennai confirming a demand of duty of Rs.80,24,009/-under Section 11A(4) of the Central Excise Act, 1944 along with interest and also for imposing penalty under Section 11AC (a) of the Central Excise Act, 1944.
2.1 The facts in brief are that the appellant has cleared the goods viz., Armour Panels and Stretcher Assembly which are parts of helicopters without payment of duty to M/s. Hindustan Aeronautics Ltd. [HAL] based on the exemption certificates issued in terms of Notification No. 63/1995-CE dated 16.03.1995. Such clearances were made during the period from 19.03.2009 to 29.12.2011 under invoices, which were duly reflected in their ER-1 returns.
2.2 As the duty exemption under Notification No. 63/1995-CE dated 16.03.1995 is available only for the goods manufactured by HAL and other specified units and not for suppliers to HAL, a Show Cause Notice dated 12.09.2013 came to be issued for wrong availment of the exemption Notification benefit invoking extended period. After due process of adjudication, confirming the demand, interest and imposition of penalty vide Order-in-Original No. 4/2014 (CE) dated 25.03.2014 issued by the Commissioner of Central Excise, Chennai, the appellant came in appeal before this forum.
3.1 The main issue that is involved in this appeal is whether the appellant is eligible for the duty exemption benefit of Notification No. 63/1995-CE dated 16.03.1995 for their clearances of Armoured Panels and Stretcher Assembly to HAL, Bangalore.
3.2 Notification No. 63/1995-CE dated 16.03.1995 reads as follows:-
“Goods for defence purposes or other projects
In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excises and Salt Act, 1944 (1 of 1944), read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts, goods specified in column (2) of the Table hereto annexed, and falling under the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), subject to the conditions, if any, specified in the corresponding entry in column (3) of the said Table, from the whole of –
(i) the duty of excise leviable thereon which is specified in the said Schedule; and
(ii) the additional duty of excise leviable under the second mentioned Act on goods specified against S. No.1 of the said Table :
Provided that nothing contained in this notification shall apply to goods specified against S. No. 16 of the said Table on or after the 1st day of April, 1999.
