Case Law Details
Case Name : CCEx Vs M/s Wartsila (I) Pvt. Ltd. (CESTAT Mumbai)
Appeal Number : E/523/07-Mum
Date of Judgement/Order : 07/01/2016
Related Assessment Year :
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:
- The learned counsel for the revenue submitted that the exemption is available only if the goods cleared are supplied to Indian Navy. In the present case, supplies were admittedly made to M/s. Mazgaon Dock and not to Indian Navy.
- Therefore, the exemption is not admissible. He placed reliance on Hon’ble Supreme Court judgment in the case of Leader Engineering Works vs. Comm. of C.Ex., Chandigarh 2007 (212) E.L.T. 168 (S.C.).
Held by CESTAT Mumbai:
- Tribunal observed that the relevant exemption entry which was incorporated vide Notification No. 25/2002-CE dated 11- 04-2002 is- Goods supplied for use in construction of warships of the Indian Navy.
- The language of the above entry indicates that the goods supplied should be used in the construction of warship of Indian Navy. Further, among other terms and conditions of exemption one such condition is that a certificate from the Indian Navy should be produced to the Central Excise officer.
- In the said condition, it is no where mentioned that the goods has to be supplied to Indian Navy. Therefore, there is no need that the goods should be supplied to Indian Navy only.
- In result the assessee is entitled to claim exemption , appeal of revenue was dismissed.
Qualification: CA in Job / Business
Location: Hyderabad, Telangana, IN
: 19 Aug 2018 | Total Posts
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