Waste-to-energy exemption cannot extend to turbine or generator where conversion occurs in the boiler.

An exemption for non-conventional energy devices under Notification No. 6/2002-CE was held inapplicable to an imported steam turbine and generator for countervailing duty purposes because the waste-to-energy conversion was taking place in the boiler, not in the turbine. Applying the principle from Triveni Engineering, the Tribunal treated the boiler as the relevant waste-conversion device and the turbine as equipment that only further converts steam or heat energy into mechanical or electrical energy. The exemption could not therefore be extended to the turbine or generator, and the denial of CVD benefit was sustained.

---

---

Issues: Whether the imported steam turbine and/or generator was entitled to exemption under Notification No. 6/2002-CE dated 01.03.2002 for the purpose of countervailing duty, on the footing that the waste-to-energy conversion took place only in the boiler and not in the turbine.

Analysis: The benefit under the exemption notification was claimed for turbine and generator imported under Project Imports. The Tribunal examined the scope of the notification in light of the earlier decision in Triveni Engineering, which had held that the exemption for non-conventional energy devices applies to the waste-conversion device itself and not to a turbine that merely converts steam or heat energy into mechanical or electrical energy. The Tribunal accepted that the conversion of agricultural and other specified wastes into thermal energy occurs in the boiler, while the turbine only uses that thermal energy for further conversion. It therefore held that the notification could not be extended to the turbine and/or generator for CVD purposes.

Conclusion: The benefit of Notification No. 6/2002-CE dated 01.03.2002 was not available to the appellants for computation of countervailing duty.

Final Conclusion: The appeals failed and the denial of the exemption benefit for CVD calculation was sustained.

Ratio Decidendi: An exemption meant for waste-conversion devices producing energy cannot be extended to a turbine or generator that merely converts steam or heat energy into another form of energy.

---