The Customs, Excise, and Service Tax Appellate Tribunal ( CESTAT ) Hyderabad, in Commissioner of Central Tax vs. ICRISAT, held that International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) is entitled to exemption under Notification No. 108/95-C. E and consequently for the refund of Central Excise duty paid on the fuel used for undertaking research work and other allied activities.
The issue before the Tribunal was whether ICRISAT international organization is entitled to exemption from payment of Central Excise duty under Notification No. 108/95-C. Eon High-Speed Diesel (HSD) obtained and to the refund of duty of excise paid on such HSD used by them since they had paid duty on them at the time of clearance from Indian Oil Corporation Ltd (IOCL).
The Respondent is an organization recognized as an international organization by virtue of Section 3 of the United Nations Act and also extended the benefit of Notification No. 108/95-CE. They procured duty paid petroleum products during the period June 2015 to October 2015. The filed refund claims. Show cause notices were issued to respondent directing them as to why refund claim should not be rejected; the appellant agitated the matter on merits before the Adjudicating Authority. The Adjudicating Authority after following due process of law, relying on the Board Circular F No. 261/27/3/2006-CX8 dated 14.08.2008 dropped the proceedings initiated by the show cause notice, sanctioned all the refunds. Revenue Authorities preferred appeals before the First Appellate Authority. The First Appellate Authority upheld the Order-in-Original and rejected the Department’s appeals. Thereafter Revenue appealed before CESTAT.
The bench comprising of Judicial Member M.V. Ravindran observed that in order for ICRISAT to avail refund of Central Excise duty paid on petroleum products procured, they have to satisfy some conditions, which they have complied. “It is not disputed in these appeals ICRISAT had complied with the conditions in the refund claims filed for as per Board Circular dated 14.08.2008, I find both the lower authorities were correct coming to a conclusion with the respondent herein is eligible for the refund of an amount paid towards Central Excise duty on the fuel consumed by them during the relevant period in question. In my view, concurrent findings of facts need to be upheld and I do so.” observed the Tribunal.
