PSL LTD. Vs. COMMISSIONER OF CENTRAL EXCISE, RAJKOT

JUDGEMENT

(1.) HEARD both sides on the stay petition.

(2.) THE applicant had made supplies to projects funded by Asian Development Bank (ADB) and availed the exemption from payment of duty under Notification No. 108/95. When goods are cleared on exemption the credit involved on the raw materials requires to be reversed. However exception to reversal of the credit is also provided under Rule 6 of Cenvat Credit Rules in the situations mentioned there under. The Commissioner, holding that the ADB is not an international organization, has ordered for payment of 10% of the value of the clearances on the ground that the benefit of exception to reversal of the credit provided under Rule 6 of Cenvat Credit Rules, does not apply to supplies made to projects funded by ADB. He has relied upon the website of Ministry of External Affairs to conclude that ADB is not an international organization. The learned advocate submits that the Commissioner has ignored the gazette notification holding ADB as an international organization and perhaps the website of Ministry of External Affairs is not updated.

(3.) WE have carefully considered the submissions. We find two contradictory views have been taken, one for the purpose of extending the benefit of Notification No. 108/95 and another to deny the benefit of exception provided under Rule 6 of Cenvat Credit Rules. As the benefit of notification holding ADB as an international organization has been granted, prima facie, we find that the applicant has a strong case in their favour and we therefore grant an unconditional stay.