Exemption notification coverage for waste-to-energy devices extends to knocked down components forming the complete notified system.

An exemption notification covering non-conventional energy devices was interpreted broadly to include agricultural waste conversion systems and their integral components. The Tribunal held that clearing the equipment in knocked down condition did not change its character where the parts together formed the notified device intended for waste-to-energy conversion. Applying the plain language of the notification, it rejected a narrow reading based on any unstated intention and followed earlier precedent on the same notification. The exemption was therefore available and denial of benefit was unsustainable.

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Issues: Whether non-conventional energy devices cleared in knocked down condition, being parts or integral components of an agricultural waste conversion system, were entitled to exemption under Sl. No. 237 read with Sl. No. 16 of List 9 of Notification No. 6/2002-CE dated 01.03.2002.

Analysis: The description in List 9 was held to be broad and comprehensive, covering agricultural, forestry, industrial, municipal and urban waste conversion devices producing energy. The Tribunal found that the goods cleared in knocked down condition still formed part of the complete device intended for conversion of waste into energy, and that the notification did not warrant a restricted reading merely because the items were supplied in separate components. It was further observed that, in an exemption notification, the plain language controls and benefit cannot be denied by importing a supposed intention not found in the wording. The Tribunal also followed earlier precedent under the same notification taking a similar view on integral components of non-conventional energy devices.

Conclusion: The exemption was available and denial of benefit was unsustainable.

Final Conclusion: The appeal succeeded and the assessee was held entitled to consequential relief.

Ratio Decidendi: Where the wording of an exemption notification broadly covers a non-conventional energy device or system, its benefit cannot be denied merely because the device is cleared in knocked down condition or consists of integral components, if those components together form the notified device for the intended energy-conversion purpose.

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