Exemption for waste-to-energy components upheld where identifiable parts formed an integral biomass boiler system.

Goods manufactured and cleared for use in biomass energy boiler systems were treated as eligible for exemption under Notification No. 6/2000-CE as non-conventional energy devices or systems listed in List 9. The Tribunal applied the broad wording of the notification to waste-to-energy conversion equipment, holding that identifiable components supplied on site, even in knocked down form, do not lose exemption merely because they are delivered in parts if they form an integral part of the device and serve the notified end-use. On that reading, the goods fell within the plain language of the exemption and denial of relief was not sustainable.

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Issues: Whether the goods manufactured and cleared for use in biomass energy boiler systems were eligible for exemption under Notification No. 6/2000-CE as non-conventional energy devices or systems specified in List 9.

Analysis: The goods were supplied on site for fabrication and use in biomass-based boilers intended to convert waste into energy. List 9 to the notification covered non-conventional energy devices or systems, and Sl. No. 16 therein used wide language covering waste conversion devices producing energy. The Tribunal applied its earlier view that where the items form an integral and identifiable part of the device meant for that conversion purpose, the exemption cannot be denied merely because the goods are supplied in parts or knocked down condition. The description in the notification was treated as broad enough to cover the items in question.

Conclusion: The goods were held to be covered by the exemption notification, and the denial of exemption was unsustainable; the appeal succeeded.

Ratio Decidendi: Where an exemption notification describes non-conventional energy devices in broad terms, identifiable components supplied for and forming part of the device used in waste-to-energy conversion are eligible for exemption if they serve the stated end-use and fall within the plain language of the notification.

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