L.G. ELECTRONICS INDIA LTD. Vs. CCE, NOIDA

JUDGEMENT

(1.) THE duty demand in the present case is consequent upon denial of the benefit of Notification No. 10/97 dated 1.3.1997 to air conditioners cleared by the appellant. The above Notification granted exemption to scientific instrument supplied to public funded research institutions for use in research purposes. Appellant claimed the benefit of the Notification in respect of certain supplies of air -conditioners during the period March 1998 to April 2002. A Show -cause Notice was issued on 9.5.2002 alleging that the exemption had been wrongly availed by misdeclaring the relevant facts and therefore, the duty was liable to be recovered under the proviso to Section 11A of the Central Excise act, 1944. The Notice also proposed imposition of penalty.

(2.) UPON adjudication of the Show -cause Notice the duty demand was confirmed. In addition, penalty was imposed and claim for interest was also made.

(3.) WE have perused the records and have heard the learned SDR also. It is noticed that each of the clearances in terms of the Notification was supported by an eligibility certificate issued by research institution. This certificate clearly claimed the exemption for the goods. No allegation of collusion between research institution and the appellant is raised. In these circumstances, we are of the opinion that the allegation of mis -declaration by the appellant is not sustainable. In the absence of that invocation of proviso to Section 11A for raising demand for the extended period is not justified. Therefore, the demand in excess of the amount of Rs. 1,30,385/ - is liable to be set aside. We do so.