Full Judgment
2. The appellants are engaged in the manufacture of writing and printing paper falling under Chapter 48 of the Schedule to the CETA.They supplied these goods to the Delhi Bureau of Text Books in (short DBT) in pursuant of the order dated 18.10.2000 placed with them by the Secretary of the said DBT and cleared the goods without payment of duty by availing the exemption under Chapter Heading 4802.10 of the CETA.3. The benefit of the exemption from duty under the above-said Chapter Heading had been denied to them on two grounds (i) that the DBT is neither a State Text Books Publication Corporation nor a Board owned by the State; (ii) that the order for the purchase of the goods was not placed with the appellants by the officer not below the rank of Deputy Secretary of the State/Board.
4. The learned Counsel has contended that the DBT is a Delhi State Government's Board and that the purchase order had been countersigned by the Chairman who is the Special Secretary of Education, Delhi Government. Therefore, both the conditions laid down in para 1(a) of the Note appended to Sub-heading 8402.10 of the CETA stands satisfied and as such the appellants could not be denied exemption from duty under the said Sub-heading. On the other hand, the learned SDR has reiterated the correctness of the impugned order.
5. We have heard both the sides and gone through the record. From the record, it is evident that the appellants are engaged in the manufacture of writing and printing paper classifiable under Chapter 48, They had supplied the goods to DBT which is wholly owned and organised by the State Government of Delhi as is evident from the Certificate issued the Director, Shri Rajendra Kumar, IAS. Therefore, the first ground putforth by the Department that the DEBT is not a Government owned body does not survive.
6. No doubt initially the order for the purchase of the goods was placed by the Secretary of DBT. But later on, on the pointing out of the dept, they had got the said order countersigned by the Chairman and the Chairman is also Special Secretary of Education of the Government of NCT of Delhi. This post of Chairman in fact is being held by the Director of the Education with the status of Special Secretary Education. These facts are quite evident from the certificate issued by the Directorate of Education, Government of NCT of Delhi dated 17.10.2003 which has been placed on record by the appellants.
Therefore, both the conditions laid down in para 1(a) of the Sub-heading notes of Chapter 48 of the CETA stand satisfied as the said para only enacts that the sub-heading 4802.10 prescribing nil rate of duty, will apply if the goods writing/printing paper had been supplied by the manufacturer against a purchase order placed by the State Text Public Education Corporation or Board by an officer not belong the rank of Deputy Secretary in the State Government concerned. That being so, the appellants could not be denied the benefit of this exemption when the supply of the goods by them falling under this sub-heading to the DBT, a Government owned body is not in dispute.
7. In view of the discussion made above, the impugned order is set aside. The appeals of the appellants are allowed with consequential relief, if any, permissible under the law.