SPIC ORGANICS LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) FINAL ORDER NO. 1569/2005 DT. 3/11/2005 Certified on 26 -12 -2005 This is an appeal filed against order in appeal No. 101/2000 dated 17.10.2000 passed by the Commissioner of Central Excise (Appeals), Chennai.

(2.) BRIEF facts of the care are as follows: The appellants cleared Polyols, an excisable commodity manufactured by them to M/s. Inalsa Limited without payment of duty under Notification No. 108/95 dated 28.8.95 during the period from 3.8.96 to 22.12.97. M/s. Inalsa Ltd. in turn, used the said goods for the manufacture of vaccine carriers and supplied the same to a project of UNICEF. The appellants filed "173 B declaration" claiming the benefit of the above mentioned Notification. While finalising the assessment in July, 1998 the department took the view that the appellants are not entitled for exemption and directed them to pay duty. Accordingly, the appellants paid an amount of Rs. 4,64,434/ - on 24.7.98 under protest and filed a refund claim dated 17.12.98. The refund claim was rejected. The appellants approached the Commissioner (Appeals). The Commissioner (Appeals) upheld the order of the lower authority. Hence the appellants have come before this Tribunal for relief.

(3.) LD . Counsel submitted Notification No. 108/95 exempts the goods which are supplied to the project financed by the UNICEF. He said that the benefit is denied to them on the ground that they have not supplied the goods directly to the UNICEF project. Ld. Counsel relied on the decision of the Tribunal in the case of Caterpillar India Pvt. Ltd. v. CCE, Pondicherry wherein it has been held that the benefit of Page 0109 Notification No. 108/95 is not deniable on the ground that the goods were not supplied to the Project Implementing Authorities, but to Contractors of project who would continue to be owners, and would continue to possess the same even after the completion of project. He said that the present case stands even on a stronger footing as the goods supplied would ultimately be owned by the beneficiaries of the UNICEF Project.