Project-site manufacture treated as same premises, allowing exemption for pipes made at an off-road location.

Exemption under Notification No. 41/11 was considered for pipes fabricated at a separate off-road site allotted exclusively for the recipient's project. The Tribunal treated that site as part of the same premises because the departmental circular stated that a separate off-road location available to the manufacturer may be regarded as the same premises, including for goods under Heading 68.07 and sub-heading 7308.50. As the goods were manufactured solely for use in construction work at that site, there was no basis to deny the exemption, and relief followed in favour of the assessee.

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Issues: Whether the assessee was entitled to exemption under Notification No. 41/11 dated 18.11.2011 for pipes fabricated at a site allotted exclusively for the recipient's project, treating the separate off-road location as part of the same premises.

Analysis: The Tribunal noted that the departmental circular stated that a separate off-road site is also to be treated as the same premises, including premises made available to the manufacturer for goods falling under Heading No. 68.07 and sub-heading 7308.50 of the Schedule to the Central Excise Tariff Act, 1985. Since the goods were manufactured exclusively for use in the construction work at that site, there was no justification to deny the exemption.

Conclusion: The exemption was admissible and the impugned order was set aside in favour of the assessee.

Final Conclusion: The appeal succeeded and the assessee obtained relief from the denial of exemption.

Ratio Decidendi: A separate off-road site made available for exclusive project manufacture can be treated as part of the same premises for extending the exemption where the departmental circular so provides.

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