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of <h1>Gear box supplies to Mega Power Projects qualify for exemption benefits under Notification 06/2006-C.E. with proper certificates</h1> CESTAT Kolkata allowed the appeal, ruling that the appellant properly fulfilled conditions under Notification No. 06/2006-C.E. for exemption benefits on ... Supply of gear boxes to Mega Power Projects - Availing exemption benefit without fulfilling the conditions stipulated in the exemption Notification No. 06/2006-C.E. dated 01.03.2006 - appellant could not produce evidence to confirm that the contracts were entered into under international competitive bidding and the appellant has not submitted the certificates issued by the appropriate authority for availing the benefit of the exemption Notification - HELD THAT:- The documents as required under the conditions of Notification No. 06/2006-C.E. have been submitted. In respect of all these projects, the appropriate authority has certified that they are Mega Power Projects. There is no dispute regarding receipt of the goods by the concerned projects. Appropriate certificate, as required under the Notification, has been submitted. Wherever there is some variation in the certificate issued, they have submitted additional evidence to establish that the goods were supplied to Mega Power Projects as certified by the Project Authority. Thus, the appellant has fulfilled the conditions stipulated in the Notification No. 06/2006-C.E. dated 01.03.2006. Another ground raised by the ld. adjudicating authority in the impugned order to deny the benefit of the exemption Notification is that the goods manufactured by the appellant do not fall under Heading 98.01 as mentioned in the Notification No. 21/2002. In this regard, it is observed that Notification No. 21/2002 exempts all goods supplied against international competitive bidding. The goods cleared by the appellant under Chapter Heading 8483 are also covered within scope of the Notification No. 21/2002. Thus, the appellant fulfilled all the conditions as stipulated in the Notification No. 06/2006-C.E. dated 01.03.2006, as amended, for availing the benefit of the said Notification. The appellant is eligible for the exemption and they have rightly cleared the goods without payment of duty by availing the benefit of the exemption Notification No. 06/2006-C.E. dated 01.03.2006. Thus, the demand of central excise duty confirmed in the impugned order by denying the benefit of the exemption Notification is not sustainable and hence, we set aside the same - Since the demand of duty itself is held to be not sustainable, the question of demanding interest and imposing penalty does not arise. The impugned order is set aside - appeal allowed. Issues:1. Applicability of exemption Notification No. 06/2006-C.E. dated 01.03.2006 to the appellant's supply of gear boxes to Mega Power Projects.2. Compliance with conditions stipulated in the exemption Notification.3. Allegation of non-submission of required certificates by the appellant.4. Classification of goods under Heading 8483 for exemption eligibility.Analysis:The Appellant, engaged in manufacturing gear boxes, availed the benefit of exemption Notification No. 06/2006-C.E. dated 01.03.2006 for supplying gear boxes to Mega Power Projects. Audit Officers alleged non-compliance with conditions of the exemption and issued a Show Cause Notice demanding duty payment. The Ld. Commissioner confirmed the demand, imposing penalty and interest. The Appellant contended they met all conditions, submitting necessary documents for various projects like Raghunathpur Thermal Power Project, Ultra Mega Power Project at Mundra, Thermal Power Project at Tuticorin, among others. The Appellant provided certificates from project authorities, Ministry of Power, and Central Electricity Authority, fulfilling Notification requirements.The Tribunal observed the Appellant cleared goods to Mega Power Projects under international competitive bidding, complying with Notification No. 06/2006-C.E. dated 01.03.2006. The Appellant submitted all necessary documents, certifying the projects as Mega Power Projects. The Tribunal noted no dispute regarding goods supply and upheld the Appellant's compliance with exemption conditions. Additionally, the Tribunal addressed the classification issue raised by the adjudicating authority, confirming the goods' eligibility under Heading 8483 as per Notification No. 21/2002, which exempts goods supplied through international competitive bidding.Consequently, the Tribunal held the Appellant eligible for exemption, setting aside the duty demand. As the demand was deemed unsustainable, interest and penalty imposition were deemed unnecessary. The appeal was allowed, providing consequential relief as per law. The Tribunal's decision, pronounced on 23.08.2024, favored the Appellant, emphasizing their fulfillment of exemption conditions and correct classification of goods for duty exemption.
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