Exemption for DMRC project supplies upheld where steel plates formed part of traction equipment and certification conditions were met.

Steel plates supplied for use in the Delhi MRTS project were treated as eligible for exemption under Notification No. 6/2002-Central Excise, serial no. 260A, because the notification covered equipment, machinery and rolling stock procured by or on behalf of DMRC for the project. The required certificate from the authorised DMRC officer was produced, confirming that the goods were procured for the project and would remain in DMRC's inventory and ownership. The plates were used in fabrication of equipment and structures and were supported by a TRU clarification treating them as part of traction equipment. On that basis, the notification conditions were satisfied and exemption was available.

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Issues: Whether steel plates supplied to Delhi Metro Rail Corporation were entitled to exemption under Notification No. 6/2002-Central Excise dated 01.03.2002 at serial no. 260A.

Analysis: The exemption covered all items of equipment, including machinery and rolling stock, procured by or on behalf of Delhi Metro Rail Corporation Ltd. for use in the Delhi MRTS project. The required certificate from the authorised DMRC officer had been produced and certified that the goods were procured for the project and would remain in DMRC inventory and ownership. The steel plates were used for fabrication of equipment and structures and were supported by the TRU clarification treating them as part of traction equipment. On that basis, the conditions of the notification were held to have been satisfied.

Conclusion: The assessee was entitled to the benefit of the exemption notification.

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