Water supply exemption for ductile iron pipes upheld where district certificates showed compliance with notification conditions.

Ductile iron pipes cleared for water supply projects were treated as eligible for exemption under Notification No. 6/2002-CE, as amended by Notifications No. 6/2006 and 6/2007, where the goods were used for delivery of water from the source to the plant and up to the first storage point, or as integral parts of water supply projects within the prescribed diameter limits. Certificates issued by the Collector or other district authorities were accepted as satisfying the notification conditions because they indicated the intended use of the goods, and the factual finding of compliance was not effectively controverted. Prior Tribunal decisions were also treated as supporting the same view, and the Revenue's challenge was rejected.

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Issues: Whether ductile iron pipes cleared for water supply projects were eligible for exemption under the relevant exemption notifications, and whether the certificates issued by the district authorities satisfied the notification conditions.

Analysis: The pipes were cleared during the relevant period claiming exemption under Notification No. 6/2002-CE as amended by Notifications No. 6/2006 and No. 6/2007. The exemption applied to pipes required for delivery of water from the source to the plant and up to the first storage point, and to pipes exceeding the prescribed diameter when used as an integral part of water supply projects. The certificates issued by the Collector or other district authorities were found to have been issued in the manner required by the notifications and to indicate the intended use of the goods. The factual finding recorded by the first appellate authority on compliance with the notification conditions was not effectively controverted, and the issue was also treated as settled by prior Tribunal decisions.

Conclusion: The pipes were eligible for exemption under the notifications, and the Revenue's appeal was rejected.

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