2019 (5) TMI 460 - AT - Central Excise

Tribunal grants exemption under Notification No. 6/2006-CE for supplying goods to 1200 MW power plant

The Tribunal ruled in favor of the appellant, holding that they were entitled to the benefit of Notification No.6/2006-CE for supplying goods to a power ... Supply of various goods to Essar Power Gujarat Limited, Salaya Power Plant of 1200 MW capacity (2 X 600 MW) - goods supplied against International Competitive Bidding - Benefit of N/N. 06/2006-CE dated 01.03.2006 - HELD THAT:- There is no dispute that the appellant has satisfied all the eligibility conditions, such as, the goods covered by the Certificate issued by the authorities specified within the Notification. The only objection of the Revenue is that the goods were supplied to a projects comprising two Power Plants of 600 MW capacity each. But we find that combined capacity of the power plant at Salaya implemented by Essar Power Gujarat Limited, was 1200 MW. Similar dispute has been decided in favour of the assessee by the Delhi Bench of the Tribunal in the case of CROMPTON GREAVES LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, INDORE [2015 (10) TMI 1916 - CESTAT NEW DELHI]. Benefit of notification allowed - appeal allowed - decided in favor of appellant. Issues:Interpretation of Notification No.6/2006-CE for exemption eligibility based on power plant capacity.Analysis:The appellant supplied goods to a power plant with a capacity of 1200 MW, seeking exemption under Notification No.6/2006-CE. The dispute arose as the Revenue contended that the benefit was only for power plants with a capacity of 1000 MW or more. The appellant argued that the power plant's mega status was certified by the Ministry of Power, justifying eligibility for the exemption. The appellant also cited a similar case precedent from the Delhi Bench of the Tribunal to support their claim.The Tribunal examined the Certificate issued by the Ministry of Power, confirming the Salaya Power Project's capacity as 1200 MW. Additionally, the Tribunal referenced the Delhi Bench's decision in a similar case, emphasizing that the combined capacity of the power plant should be considered for exemption eligibility. The Tribunal highlighted the clarification from the Ministry of Power that mega power projects with a total capacity of at least 1000 MW are eligible for exemption benefits.Consequently, the Tribunal ruled in favor of the appellant, stating that they were entitled to the benefit of Notification No.6/2006-CE. The impugned order was set aside, and the appeal was allowed with any consequential relief.