TaxTMI 
TaxTMI 
2011 (7) TMI 272
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.... obtained a certificate for the above supply from the District Collector, Nagpur District as stipulated in the said Notification. In terms of the agreement entered into between the Government of Maharashtra and the M/s Maharashtra Airport Development Company Ltd (MADC), (the nodal agency for infrastructure development of MIHAN area) the water from the Wadgaon reservoir was to be used for two purposes, one for domestic use and the other for industrial use. Of the total sanctioned quota of 26.16 million cubic meter of water, 19.44 million cubic meter of water was to be used for domestic purposes and the balance 6.72 million cubic meter of water was to be used for industrial purposes (other than as raw material). 2.2 Notification No. 6/2006-CE dated 1.3.2006 granted exemption to pipes needed for delivery of water from its source to the plant (including the clear treated water of reservoir, if any, there are) and from there to the storage facility. The Explanation to the relevant entry in the Notification further read as follows: For the purpose of this exemption, water treatment plant includes a plant for desalination, demineralization or purification of water or for carryin....
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....DC are present and M/s MADC has sought adjournment. However, as the issue involved is common, we take up all the appeals together for disposal. 3 The learned counsel for the appellant submits that vide Notification No. 6/2002 dated 1.3.2002, pipes supplied for drinking water projects for animal or human consumption was granted duty exemption and the said Notification specifically excluded pipes meant for water supply for industrial purposes. Subsequently, in 2004 the Government issued another Exemption Notification No. 3/2004-CE dated 8.1.2004 which provided exemption to pipes needed for delivery of water for agricultural or industrial use. In the said Notification also, to claim the exemption, a certificate from the District Collector was required certifying that the pipes are intended for use for supply of water for agricultural or industrial use. The said Notification No. 3/2004 is also in existence. Notification No. 6/2006-CE which succeeded Notification No. 6/2002 provides exemption to pipes intended for use in water supply projects meant for animal or human consumption whereas Notification No. 3/2004 provides duty exemption to pipes intended for use for supply of wa....
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....roduction of goods for export that would have been made clear and qualifying the terms used for the purpose of export by the words solely or exclusively . In the absence of such words used in the notification, the Tribunal allowed the exemption. 3.2 The learned counsel also relies on the judgment of the Tribunal in the case of Indian Charge Chrome Ltd vs CC 2001 (138) ELT 609. In that case duty exemption was provided on captive power plant for generation of power to be used to export goods vide Notification No. 13/81-Cus dated 9.2.1981. Excess power generated was diverted to the domestic tariff area but bulk of the power was used for manufacture of export goods. The department sought to deny the benefit of exemption on the ground that part of the power was used in the domestic tariff area and not for export of goods and hence the benefit will not be available. The Tribunal in that case held in the absence of any restriction of the clause in the Notification that the imported goods will be solely or exclusively used for purpose of manufacture of goods for export, the benefit of notification would be available, so long as the power is predominantly used in the man....
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....nted. 5 We have carefully considered the rival submissions. 5.1 There is no dispute that excise duty exemption is available for pipes needed for projects supplying water for animal or human consumption under Notification No. 6/2006-CE dated 1.3.2006 and pipes supplied to water projects used for agricultural or industrial use under exemption Notification No. 3/2004. Both the notifications stipulate the condition that a certificate from the same District Collector should be obtained for availing the exemption. The question is when the pipes are used for projects which supply water for both industrial and non industrial purposes, whether the exemption would be available or not.Notification No. 6/2006-CE grants exemption to pipes needed for delivery of water from its source to the plant and from their to the storage area. The Explanation thereof states that the plant does not include a plant for supplying water for industrial purposes. In the instant case water has been supplied for domestic use to the extent of 19.44 million cubic meter and for non domestic use (other than as raw material for industrial use) to the extent of 6.72 million cubic meter. The notificati....