2007 (10) TMI 180

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nd claimed exemption in terms of Notification No. 6/2002 dated 1-3-2002 Entry No. 21. The original authority denied the exemption on the ground that the exemption is available only to parts consumed inside the factory for production of vibration system and its parts. Therefore he demanded duty of Rs. 1,42,760/- for the period from December 2003 to June 2004 under Section 11A. Interest was also demanded. A penalty of Rs. 10,000/- was imposed. The appellants approached the Commissioner (Appeals) while setting aside the penalty; Commissioner (Appeals) uphold the demand following the decision of his predecessor. The appellants are highly agitated with the issue and hence they have come before this Tribunal for relief.   3.  &n....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....only on the grounds that flanges were not eligible since they were not consumed in the factory of production for the manufacture of tower has to be considered with the fact that tower of a Wind Mill being huge structures would only came into existence in the factory of manufacture as a design and in fact they would arise only in fact at site after assembly using the flanges. Consumption at site in tower is not questioned on facts nor it can be said that flange is not used where the tower came into existence. The concept of interpretation of "consumed in factory of production" and limiting the same to the Central Excise registered premises of the appellants herein and deprive the use at site cannot be upheld. 5.    &nb....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the impugned goods to M/s. Raghurama on of Renewable Energy Ltd. and M/s. Arashi Hitech Bio Power Pvt. Ltd. claiming exemption under item 21 of list 9 of the said notification which is reproduced below:      List 9 (Item 21): "Parts consumed within the factory of production of such parts for the manufacture of goods specified in     Item No.1 to 20 above". 7. The impugned goods are meant for use for Non-Conventional renewable bagasse biomass/bio waste based cogeneration power project. Since the impugned item can be considered as parts of waste convention devices producing energy there is no doubt that they would be entitled for the exemption notification. However in terms of the above mentioned....