Excise exemption for CCTV supplies to a mega power project upheld despite no ICB participation by the supplier.

Notification No. 6/2006-CE was applied as an independent exemption regime, so entitlement depended on its own conditions rather than deemed export procedure requirements under the Foreign Trade Policy. CCTV systems supplied to a mega power project remained eligible where the project itself had been awarded to a bidder participating in International Competitive Bidding, and local procurement merely substituted for duty-free import under the corresponding customs exemption. The absence of the supplier's name in project certificates and the lack of sub-contractor approval did not, by themselves, defeat the exemption when the notification conditions were otherwise met. The duty exemption claim was upheld and denial of benefit was held unsustainable.

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Issues: Whether the assessee was entitled to exemption from central excise duty under Notification No. 6/2006-CE for CCTV systems supplied to a mega power project, despite not participating in International Competitive Bidding and despite the project not issuing certificates mentioning the assessee's name.

Analysis: The exemption under Notification No. 6/2006-CE was held to depend on the conditions contained in that notification and not on the deemed export procedure or conditions in the Foreign Trade Policy. The goods were supplied for a project awarded to a person who had participated in International Competitive Bidding, and the local procurement route merely enabled the same duty-free procurement that could otherwise have been made through import under the corresponding customs exemption. The absence of the assessee's name in the certificates and the fact that it was not approved as a sub-contractor did not, by themselves, defeat the exemption when the notification conditions were otherwise satisfied.

Conclusion: The assessee was entitled to the exemption and denial of the benefit was unsustainable.

Final Conclusion: The impugned order was set aside and the appeal was allowed, with the duty exemption claim upheld.

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