Mega power project exemption upheld where substantive certification existed and FTP reference did not defeat excise relief.

Goods supplied for a mega power project were held eligible for exemption under Notification No. 6/2006-C.E. because the governing conditions under Notification No. 21/2006-Cus. were met in substance, including the required Ministry of Power certification. The Tribunal treated the project authority's reference to paragraph 8.2(g) of the Foreign Trade Policy as relevant to deemed export treatment, not as a disqualifying defect for excise exemption. Paragraphs 8.2(f) and 8.2(g) governed deemed exports under the policy and did not control eligibility under the customs or excise notifications. Accordingly, the duty demand was set aside, and the associated interest and penalties could not survive.

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Issues: Whether goods supplied for a mega power project were entitled to exemption under Notification No. 6/2006-C.E. despite the project authority certificate referring to paragraph 8.2(g) of the Foreign Trade Policy rather than paragraph 8.2(f), and whether the demand of duty, interest, and penalties could survive.

Analysis: The exemption under Notification No. 6/2006-C.E. was linked to goods exempted from customs duty under Notification No. 21/2006-Cus., together with the conditions prescribed in that customs notification. The record showed that the project was a mega power project and the required certification from the Ministry of Power had been issued. The objection related only to one certificate produced by the project authority, but the Tribunal found that the relevant certification under condition 86(c) was in substance available and that the reference to paragraph 8.2(g) of the Foreign Trade Policy was relevant to deemed export treatment under the policy, not to eligibility for exemption under the excise notification. Clause 8.2(f) and clause 8.2(g) of the Foreign Trade Policy governed deemed exports and did not control the exemption under the customs or excise notifications.

Conclusion: The exemption was correctly availed. The duty demand was set aside, and the interest and penalties could not survive.

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