Exemption for international competitive bidding supplies extends to mandatory spares, preventing CENVAT credit reversal and duty liability.

Exemption under Notification No. 6/2006 applied to supplies made against international competitive bidding, and the same benefit extended to mandatory spares supplied with the main equipment. On that basis, reversal of CENVAT credit was not required, and no duty, interest, or penalty was payable in respect of those clearances. The view was followed from the appellants' own earlier case, which had already been accepted by the Revenue, and the same exemption treatment was maintained for the disputed supplies and spares.

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Issues: Whether the appellants were entitled to exemption under Notification No. 6/2006 dated 01.03.2006 for supplies made against international competitive bidding, including mandatory spares, and consequently not liable to reverse CENVAT credit, pay duty, interest, or penalty.

Analysis: The issue was treated as already settled in the appellants' own case. The exemption under Notification No. 6/2006 was held applicable to goods supplied against international competitive bidding. The mandatory spares supplied along with the main equipment were also treated as covered by the same exemption, and there was no justification to require reversal of credit or payment of 10% of the value of such spares. The earlier decision having been accepted by the Revenue, the same view was followed.

Conclusion: The appellants were entitled to the exemption and were not liable for reversal of credit, duty, interest, or penalty.

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