Exemption for mega power project boiler parts upheld where customs notification conditions and prior coordinate rulings were satisfied.

Boiler parts and components supplied to a mega power project were held eligible for exemption under Notification No. 6/2006-C.E. because the central excise exemption depended on corresponding customs exemption, and the goods fell within the customs notification for Tariff Heading 9801 goods required for setting up power projects of 1000 MW or above subject to certification. The Tribunal also relied on its own earlier decision in the appellant's case and coordinate bench rulings on identical goods and notifications. On that basis, the denial of exemption was unsustainable, and the demand and penalty could not be maintained.

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Issues: Whether the appellant was entitled to exemption under Notification No. 6/2006-C.E. for boiler parts and components supplied to a mega power project, in light of the corresponding customs notification condition and the classification dispute raised by the Revenue.

Analysis: The exemption under the central excise notification depended on the imported goods being exempt from customs duty, and the relevant customs notification covered goods falling under Tariff Heading 9801 required for setting up power projects of 1000 MW or above subject to certification. The Tribunal noted that the same exemption question in the appellant's own case had already been decided in its favour on similar facts, following earlier coordinate decisions on identical goods and notifications. In view of those settled decisions, the impugned denial of exemption could not be sustained.

Conclusion: The appellant was entitled to the exemption, and the demand and penalty were not sustainable.

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