Exemption for PVC pipe clearances sustained where valid certificate and notification conditions were satisfied, despite later certificate cancellation.

PVC pipe clearances under Notification No. 3/2004-CE were held eligible for exemption where the goods were supplied against a valid certificate issued by the competent authority and the project satisfied the notification's conditions. The Tribunal treated a pumping station used for water supply as falling within the expression "water supply plant" in the notification's Explanation, and recognised a discharge chamber as a storage facility. It further held that cancellation of the certificate after the clearances did not affect supplies already made before cancellation, so the exemption remained available.

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Issues: Whether the appellant was entitled to exemption under Notification No. 3/2004-CE for clearances of PVC pipes made against a certificate issued by the specified authority, and whether the conditions of the notification stood satisfied.

Analysis: The Tribunal followed its earlier decision on the same notification and examined the scope of the expression "water supply plant" in the Explanation to the notification. It held that a pumping station used for supply of water falls within that expression. It further held that the discharge chamber constituted a storage facility for the purposes of the notification. On the facts, the goods had been cleared under a valid certificate issued by the competent authority, and the subsequent cancellation of that certificate did not affect clearances already made before cancellation.

Conclusion: The appellant satisfied the conditions of the notification and was entitled to the exemption.

Final Conclusion: The impugned order was set aside and the appeal was allowed in favour of the assessee.

Ratio Decidendi: Where goods are cleared against a valid certificate issued by the specified authority and the project answers the notification's conditions, exemption cannot be denied merely because the certificate is cancelled later.

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