In a major relief to M/s Tata Motors Limited, the appellant, the Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), allowed excise duty exemption to Chassis on projects funded by International Organization.
The appellant is a manufacturer of motor vehicle and motor vehicle chassis paying duty thereon. During the course of audit, it was found that during the period from December, 2010 to June, 2011, the appellant cleared 62 motor vehicles and motor vehicle without payment of Central Excise duty claiming exemption from payment of Central Excise duty under Notification No.108/95-CE dated 28.08.1995 as amended vide Notification No.13/2008-CE dated 01.03.2008.
The Revenue is of the view that the appellant is not entitled for the benefit of exemption Notification No.108/95-CE dated 28.08.1995 as amended vide Notification No.13/2008-CE dated 01.03.2008. Therefore, a show-cause notice was issued to the appellant and demand of duty was confirmed by way of impugned order. Aggrieved by the said order the appellant is before the Tribunal.
The Counsel for the appellant submitted that an identical fact in their own case, this Tribunal has allowed the benefit of the said Notification as reported in 2023-TIOL-673-CESTAT-Kolkata. Therefore, the appellant is entitled for the benefit of the said exemption Notification.
The Authorized Representative reiterated the findings of the impugned order.
A Two-Member Bench comprising Ashok Jindal, Member (Judicial) and K.Anpazhakan, Member (Technical) observed that “As in the appellant’s own case, the benefit of exemption Notification against Notification No.108/95-CE dated 28.08.1995 as amended vide Notification No.13/2008-CE dated 01.03.2008, is given by this Tribunal, therefore, following the said decision, we allow the exemption under Notification No.108/95-CE dated 28.08.1995 as amended vide Notification No.13/2008-CE dated 01.03.2008 as the appellant has cleared the Chassis in question to the projects funded by International Organization.”
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