Clearance of Armour Panels and Stretcher Assembly which are Parts of Helicopters are Eligible for Excise Duty Exemption Under Exemption Certificate: CESTAT [Read Order]

The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the clearance of armor panels and stretcher assembly which are considered as a part of helicopters are eligible for excise duty exemption under the exemption certificate issued. 

Taneja Aerospace and Aviation Limited, the appellant assessee had cleared the goods viz., Armour Panels and Stretcher Assembly which are parts of helicopters without payment of duty to Hindustan Aeronautics Ltd. [HAL] based on the exemption certificates issued in terms of Notification No. 63/1995-Central Excise. 

The assessee appealed against the order passed by the Commissioner of Central Excise for confirming the demand of Excise duty of Rs.80,24,009/- under Section 11A(4) of the Central Excise Act, 1944 along with interest and also for imposing penalty under Section 11AC (a) of the Central Excise Act. 

S. Durairaj, the counsel for the assessee contended that the Notification allowed the exemption to all goods manufactured by Hindustan Aeronautics Limited, Bharat Electronics Limited, Bharat Dynamics Limited, National Instruments Limited (Calcutta), National Aerospace Laboratories for supply to the Ministry of Defence for official purposes. 

Also submitted that the assessee was also eligible for the exemption under the exemption notification and the exemption certificate issued by the HAL. 

M Ambe, the counsel for the department relied on the decisions made by the lower authorities and contended that the duty exemption under Notification was available only for the goods manufactured by HAL and other specified units and not for suppliers to HAL. 

The Bench observed that in the case of Commissioner of Central Excise Vs. Datasol Innovative Labs, the court held that the assessee was eligible for the benefit of exemption based on the certificate issued. 

The two-member bench comprising Sulekha Beevi (Judicial) and Vasa Seshagiri Rao (Technical) held that the assessee cleared the impugned goods based on the exemption certificates given by the officials of HAL and exemption certificates had certified that these goods would be supplied to the Ministry of Defence for their use. 

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