Tribunal Rules in Favor of Steel Manufacturer in Central Excise Case
M/s Sangam Structurals Ltd. Versus Commissioner of Central Excise, Allahabad
M/s Sangam Structurals Ltd. Versus Commissioner of Central Excise, Allahabad - TMI
Issues:1. Classification of goods under Central Excise Tariff Act, 1985.
2. Availing Cenvat credit facility and exemption benefits.
3. Interpretation of Rule 6(6)(vii) of Cenvat Credit Rules, 2004.
4. Applicability of Notification No.6/2006-CE and Notification No.21/2002-Cus.
5. Supply of goods for International Competitive Bidding projects.
6. Legal precedent regarding similar issues.
7. Disputed clearances under Notification No.6/2002-CE.
Analysis:1. The appellant, engaged in manufacturing steel structures, faced a show cause notice for clearing products partly with and without duty, claiming exemption under Notification No.6/2006-CE. The Commissioner confirmed a demand, interest, and penalty, leading to the appeal.
2. The appellant argued that Rule 6(6)(vii) of the Cenvat Credit Rules should apply due to supplying goods to ABB Ltd. for a DMRC project, supported by certificates. They contended that the exemption under Notification No.6/2006-CE should apply, emphasizing the correct classification under the notification.
3. The Tribunal referred to a previous case, clarifying that Rule 6(6)(vii) is not limited to imported goods, rejecting the Revenue's argument. This decision favored the appellant's interpretation of the rule in their case.
4. Certificates from DMRC and ABB Ltd. confirmed the supply for International Competitive Bidding projects, aligning with legal precedents where exemptions were granted based on project execution specifics. The Tribunal highlighted similar cases supporting the appellant's claim.
5. The Tribunal noted undisputed clearances under Notification No.6/2002-CE, indicating the applicability of Rule 6(6)(vii) to the appellant. Consequently, the impugned orders were set aside, allowing the appeal with relief to the appellant.
This judgment resolved issues related to classification, exemption benefits, rule interpretation, and project-specific supply, aligning with legal precedents and specific notifications to grant relief to the appellant based on the facts and applicable laws.