2018 (5) TMI 864 – CESTAT HYDERABAD – TMI – Refund of Central Excise duty paid – Board Circular F No. 261/27/3/2006-CX8 dated 14.08.2008 – Held that: – ICRISAT has to satisfy some conditions for refund Central Excise duty paid on petroleum products procured by them. It is not disputed in these appeals that ICRISAT had complied with the conditions in the refund claims filed for as per Board Circular dated 14.08.2008 – 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 – Appeal dismissed – decided against Revenue. – Appeal No. E/31052-31054/2017 – A/30485-30487/2018 – Dated:- 19-4-2018 – Mr. M. V. Ravindran., Member (Judicial) Shri Arun Kumar, Deputy Commissioner (AR) for the Appellant. Shri S. Thirumalai, Advocate for the Respondent. [Order per: M. V. Ravindran.] These three appeals are directed against Orders-in- Appeal No. HYD-EXCUS-001-APP-040, 041 & 042-17-18-ST dated 19.
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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 in the impugned order after considering the issue holistically upheld the Order-in-Original and rejected the Department s appeals by the reasoned findings, which I reproduce. 6. I have considered the submissions made in the departmental application and those made by the respondent in writing as well as those made during the personal hearing held in the matter. The issue for decision is whether the respondent being an international organization is entitled to exemption from payment of Central Excise duty under Notification No. 108/95-C.E on 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 IOCL. As regards facts it is not is dispute that ICRISAT is a
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facility and modern bio-tech laboratory which are technical requirements in the research activities being carried on by them. They are mandated under law to do such activities. It has further been submitted that fuel is being used also for transport of research materials and research related activities apart from running the official vehicles maintained by them. Therefore, it is evident that HSD consumed by the respondent is primarily to be regarded as raw material/consumable for the business carried on by the respondent in the field of research and related activities mandated under its incorporation and not solely for use as fuel in the motor vehicles maintained by them. Keeping in view the intention of the Notification which is to extend the benefit of exemption to goods supplied to international organizations, I am of the considered view that the exemption provided has to be made effective by way of the refund mechanism applicable to such organization because of the administrative d
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onal organizations is required to be restricted by the quantity limit per vehicle per month specified therein. The respondent has sought to submit that the said circulars would apply only to diplomatic missions and that they being an international organization cannot be considered as a diplomatic mission. However, it is my considered view that the circular F.No. III/7/76-CX3 dt. 20.04.1976 relied upon in the departmental application seeking to restrict the quantity of petroleum products to 350 litres per month would be applicable to the respondent in view of the fact that the said circular as presented in the Public Notice issued by Delhi Central Excise Collectorate available on record refers in its title to the UN and its agencies. The respondent being a notified agency under Section 3 of the United Nations (Privileges and Immunities) Act, 1947 is eligible to the exemption under Notification No. 108/95-C.E but restricted by the instructions issue by CBEC on petrol/HSD etc. Such restri
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19.10.1979 has not included international organization for such restriction on quantity. Therefore, the restriction of the amount of refund admissible on fuel on per litre basis would not apply to the instant case. It is also noted that while granting adhoc exemption order No. 137/01/2011-CX issued in F.No. 101/14/2010-CX3 dated 27.04.2011, CBEC has held that since ICRISAT has been granted privileges under United Nations (Privileges and Immunities) Act, 1947 they are entitled to exemption from payment of excise duties on various items for official use in terms of the international conventions. 7. In view of the above discussion, I am of the considered view that the respondent is entitled to exemption under Notification No. 108/95-C.E and consequently for refund of Central Excise duty paid on the fuel used for undertaking research work and other allied activities. However, as regards the quantity of fuel consumed by the respondent with reference to running and maintenance of official ve
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. It was directed that such difficulties should be examined and intimated to the Board for providing mechanism for refund, if necessary. It has now been reported that there is difficulty in extending the benefit of Notification No. 108/95-Central Excise dated 28.08.1995 (as amended) to Petroleum, Oil and Lubricants which are not supplied to ICRISAT directly by the manufacturers but through their depots. It has been reported that oil companies cannot supply the goods from refinery to ICRISAT as these are transferred through a pipeline and not in a tanker. Therefore benefit of Notification cannot be extended while clearing goods from factory. The provisions of refund for goods supplied to diplomatic mission has also been referred. Accordingly, a proposal has been received by the Board from Chief Commissioner of Central Excise, Visakhapatnam for providing a refund mechanism in this case. 3. The matter has been examined. As per Section 11B (1) a refund claim is to be submitted in the presc
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T making the claim is located, ICRISAT should also issue a certificate that the goods for which the refund claim is made are meant for ICRISAT official use. As for submission of documents to show that the incidence of duty has been borne by ICRISAT, the invoice issued by the sale outlet of the oil company should contain the particulars of the amount representing duty and it should be endorsed on the invoice that the goods are sold to ICRISAT from the duty paid stock. It can be seen from the above reproduced Board Circular, ICRISAT has to satisfy some conditions for refund Central Excise duty paid on petroleum products procured by them. 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 th
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