Excise exemption for mega power project supplies under international bidding upheld, making duty paid by mistake refundable.

Goods supplied to a mega power project against International Competitive Bidding were treated as exempt under the relevant excise notification because the corresponding customs exemption condition was also satisfied. The supplies fell within the specified exemption entry, and the duty was paid only due to an inadvertent clearance-stage entry. On that basis, the appellant was not liable to excise duty, the amount already paid was refundable, and denial of refund was held unsustainable with consequential relief.

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Issues: Whether the appellant was entitled to exemption and refund of excise duty paid on supplies made to a mega power project against International Competitive Bidding under the relevant notifications.

Analysis: The supplies were made against International Competitive Bidding for a mega power project and were covered by Serial No. 336 of Notification No. 12/2012-CE dated 17.03.2012. The condition attached to that exemption stood satisfied because the corresponding goods were also exempt from customs duty and additional duty under Serial No. 507 of Notification No. 12/2012-Cus dated 17.03.2012. The appellant had therefore complied with the exemption framework, and the duty was paid only due to an inadvertent entry at the time of clearance.

Conclusion: The appellant was not liable to pay excise duty, and the duty already paid was refundable. The denial of refund was unsustainable and the appeal was allowed with consequential relief.

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