Exemption for power project supplies cannot be denied merely for non-compliance with project import conditions.

Insulated wires and cables manufactured in India and classified under Chapter 85 were eligible for exemption under Notification No. 6/2006-C.E. for supply to a power project. The Tribunal held that Chapter 98.01 is a customs tariff heading, not a central excise heading, so exemption could not be denied merely because Project Import Regulation conditions applicable to imported goods were not satisfied. Relying on its earlier order in the assessee's own case and connected precedent, the Tribunal found that where the notification conditions were otherwise met, non-compliance with project import requirements was not a valid basis to refuse the benefit.

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Issues: Whether the assessee was entitled to exemption under Notification No. 6/2006-C.E. for insulated wires and cables supplied for a power project, and whether non-fulfilment of Project Import Regulation conditions could be used to deny the benefit.

Analysis: The goods were manufactured in India and classified under Chapter 85 of the Central Excise Tariff Act, 1985. The Tribunal noted that Chapter 98.01 is a customs tariff heading and not a central excise heading, and therefore the exemption could not be denied on the footing that project import conditions applicable to imported goods had not been satisfied. The Tribunal followed its earlier order in the assessee's own case and the connected precedent holding that where the notification conditions were otherwise fulfilled, denial of exemption merely for want of Project Import Regulation compliance was not sustainable.

Conclusion: The assessee was held eligible for exemption under Notification No. 6/2006-C.E., and the Revenue's appeals were dismissed.

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