Exemption notification for an identified power plant prevails despite a capacity mismatch in the supporting certificate.

Naphtha supplied to NTPC, Kayamkulam remained eligible for exemption under Notification No. 6/2002-C.E. because the notification specifically identified that power plant as the intended recipient. Although the certificate referred to a capacity of 359.577 MW instead of the 350 MW stated in the notification, CESTAT found that there was only one NTPC power plant at Kayamkulam and that the variation in stated capacity did not mean a different plant had been covered. The discrepancy was therefore not fatal to the exemption, and the Revenue's objection was rejected.

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Issues: Whether Naphtha supplied to NTPC, Kayamkulam was eligible for exemption under Notification No. 6/2002-C.E. dated 01-03-2002 despite the capacity stated in the certificate differing from the capacity mentioned in the notification.

Analysis: The exemption notification specifically identified NTPC, Kayamkulam as the recipient and referred to the power plant capacity as 350 MW. The Revenue relied on a certificate mentioning 359.577 MW and treated it as showing a different power plant. The Tribunal found that there was only one NTPC power plant at Kayamkulam and that the objection was contrary to common sense. Since the notification was intended to apply to the identified plant, the discrepancy in the stated capacity did not defeat the exemption.

Conclusion: The exemption was available to the assessee and the Revenue's objection was rejected.

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