2018 (11) TMI 1201 - AT - Central Excise

Tribunal upholds exemption for power cables & gate parts supplied to Mega Power project

CGST, CCE & ST, Alwar, CE & ST-Udaipur Versus Gemscab Industries Ltd., Om Metals Infra Projects Ltd.

The tribunal condoned a 5-day delay in filing the appeal and proceeded with the final hearing. The respondents were found eligible for exemption from duty ... Clearance of goods by Appellant (sub-contractor) to NTPC (for Mega Power Project) - benefit of N/N. 6/2006-CE dated 01.03.2006, read with N/N. 21/2002-Cus dated 01.03.2002 - Held that:- The respondent have complied with both the conditions as required under the exemption under N/N. 6/2006-CE and accordingly entitled to exemption from excise duty - In similar issue this Tribunal in the case of Paramount Communication Ltd. V/s CCE, Jaipur-I, [2016 (7) TMI 863 - CESTAT NEW DELHI] held in favour of the assessee under similar facts and circumstances - appeal dismissed - decided against Revenue. Issues:1. Condonation of delay in filing appeal2. Eligibility for exemption from duty under Notification No. 6/2006-CE3. Compliance with conditions of exemption under Notification No. 6/2006-CE4. Interpretation of tariff items and eligibility for exemption under relevant notifications5. Precedents set by previous judgmentsIssue 1: Condonation of delay in filing appealThe delay of 5 days in filing the appeal was condoned by the tribunal as sufficiently explained. The matter was taken up for final hearing with the consent of both parties.Issue 2: Eligibility for exemption from duty under Notification No. 6/2006-CEIn the case of Appeal No. E/52198, the respondent was involved in manufacturing and clearing 'insulated power cables' without payment of duty under the benefit of exemption from duty provided by Notification No. 6/2006-CE. The Commissioner (Appeal) allowed the respondent's appeal, stating that power cables supplied to the Mega Power project are eligible for exemption under the said notification. The tribunal found that the respondent had submitted the required certificate and was entitled to the exemption.Issue 3: Compliance with conditions of exemption under Notification No. 6/2006-CEAfter hearing both parties, the tribunal concluded that the appellant had complied with the conditions of the exemption under Notification No. 6/2006-CE and Customs Notification No. 21/2002-CUS. This compliance made the respondent eligible for exemption from excise duty.Issue 4: Interpretation of tariff items and eligibility for exemption under relevant notificationsIn Appeal No. E/51800/2018, the respondent was involved in manufacturing and clearing 'gates and gate parts thereof' without payment of duty under the same exemption as mentioned earlier. The tribunal upheld the Commissioner (Appeal)'s decision, stating that the gates and gate parts supplied to the Mega Power project were eligible for exemption under Notification No. 6/2006-CE.Issue 5: Precedents set by previous judgmentsThe tribunal cited a previous ruling in the case of Paramount Communication Ltd. v/s CCE, Jaipur-I, where a similar issue was decided in favor of the assessee under similar circumstances. This precedent, along with a confirmation by the Hon'ble Rajasthan High Court in a related case, supported the tribunal's decision to dismiss both appeals of the Revenue.This judgment addressed various issues related to the eligibility for exemption from duty under specific notifications, compliance with exemption conditions, and the interpretation of tariff items. The tribunal considered previous judgments to support its decision and ultimately dismissed the appeals of the Revenue, affirming the eligibility of the respondents for the exemptions claimed.