COMMISSIONER OF CENTRAL EXCISE, ALLAHABAD versus M/S. GINNI FILAMENTS LTD.

COMMISSIONER OF CENTRAL EXCISE, ALLAHABAD versus M/S. GINNI FILAMENTS LTD.

The benefit of Notification No. 123/81-CE is available only when goods removed under CT-3 are proven by evidence to be used or participate in the manufacture of products for export; mere presence in the undertaking or connection with manufacturing is insufficient. Assessee failed to prove participation of the goods; claim for exemption was wrongly allowed by Tribunal.

Parties
Appellant: Commissioner of Central Excise, Allahabad; Respondent: M/s Ginni Filaments Ltd.
Jurisdiction
India
Judgment Date
17 February 2005
Procedural Posture
Civil Appeal / Supreme Court Final Judgment
Outcome
Appeal allowed; Tribunal order set aside.
Legal Topics
Central Excise, Exemption Notifications, Export Oriented Units
Taxation Law Central Excise Exemption Notifications Export Oriented Units

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Parties

Commissioner of Central Excise, Allahabad

Appellant

M/s Ginni Filaments Ltd.

Respondent

Procedural Posture

Civil Appeal / Supreme Court Final Judgment

Legal Issues

  1. 1 Eligibility for exemption under Notification No. 123/81-CE dated 2nd June, 1981 for goods removed under CT-3 from 100% Export Oriented Undertaking

Ratio Decidendi

The benefit of Notification No. 123/81-CE is available only when goods removed under CT-3 are proven by evidence to be used or participate in the manufacture of products for export; mere presence in the undertaking or connection with manufacturing is insufficient. Assessee failed to prove participation of the goods; claim for exemption was wrongly allowed by Tribunal.

Court Disposition

Appeal allowed; Tribunal order set aside.

Orders

  • Impugned judgment and order of the Tribunal dated 4.2.1999 in Appeal No. E/A 2120/94-D is set aside.
  • No order as to costs.