TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal grants duty exemption to Om Metals in Chapter 73 case, emphasizes correct classification</h1> <h3>M/s. Om Metals Spml Jv Unit 2 Versus CCE & ST, Jaipur</h3> M/s. Om Metals Spml Jv Unit 2 Versus CCE & ST, Jaipur - 2013 (298) E.L.T. 79 (Tri. - Del.) Issues:1. Whether goods supplied against International Competitive Bidding to a Mega Power Project are entitled to exemption from duty under Notification 06/2006 dated 01.03.2006.Analysis:The appeal in question was filed by M/s Om Metals, the appellants-assessee, against an Order-in-Original passed by the Commissioner of Central Excise, Jaipur. The appellants, manufacturers of Gate and Gate Parts, were awarded a tender for a hydroelectric project by M/s National Hydroelectric Power Corporation Ltd. (NHPC). The issue revolved around the appellants' claim for exemption under Notification No. 06/2006 dated 01.03.2006 against S.No. 91, which specifies duty exemption for goods supplied against International Competitive Bidding. The Department contended that the appellants did not meet the conditions of the Notification, leading to the issuance of Show Cause Notices demanding duty, interest, and penalty. The Commissioner upheld the Notices, prompting the appellants to challenge the decision.Upon hearing both sides, the main issue was identified as whether goods classified under Chapter 73 of the Central Excise Tariff, supplied against International Competitive Bidding to a Mega Power Project, are eligible for duty exemption under Notification 06/2006 dated 01.03.2006. The relevant conditions under the Notification were scrutinized, particularly Condition No. 19, which mandates exemption from customs duties leviable under the Customs Tariff Act. Additionally, the exemption provided under S.No. 400 of Notification 21/2002 dated 01.03.2002 for goods required for setting up Mega Power Projects was analyzed, along with its conditions, including certification requirements by designated officials.The appellants had submitted certificates issued by a Joint Secretary in the Ministry of Power, satisfying Condition No. 86 of Notification 21/2002 dated 01.03.2002. The Commissioner, however, denied the exemption under Notification 06/2006 dated 01.03.2006, citing the applicability of goods classification under Chapter 98.01 of the Customs Tariff and non-fulfillment of Project Import Regulation 1986 requirements. The Tribunal noted that goods in question were classifiable under Chapter 73 of the Tariff, not 98.01, which exists in the Customs Tariff only. Therefore, denial of exemption based on Project Import Regulation non-compliance was deemed unsustainable, especially when Condition No. 86 was met. The Tribunal referenced a similar case involving Sarita Steel and Industries Ltd., where exemption under Notification 06/2006 dated 01.03.2006 was allowed despite Project Import Regulation non-fulfillment. Consequently, the Tribunal ruled in favor of the appellants, holding them eligible for the exemption and setting aside the Commissioner's order.In conclusion, the Tribunal's decision favored the appellants, emphasizing the correct classification of goods under the Central Excise Tariff and the fulfillment of relevant Notification conditions, ultimately entitling them to the duty exemption under Notification 06/2006 dated 01.03.2006.
TaxTMI 
TaxTMI 
