TaxTMI 
TaxTMI 
2016 (8) TMI 933
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....tured and cleared M.S. Pipes (size 200 mm diameter) to various sites of the department of PHED for drinking water in various districts of Rajasthan on the basis of certificate issued by the Collector and the District Magistrate of the other respective districts. The dispute arose by the Revenue taking the view that the goods covered by the certificates were meant for use in water wells as Casing Pipe to be used for the purpose of protecting wells from collapsing. Accordingly, the Original Adjudicating Authority in his order dated31.08.2006 denied the benefit of Notification No. 6/2002-CE and confirmed the demand, even though the consignments were covered by the certificate issued by the Collector and District Magistrate. He took the view th....
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....; (2) Pipes needed for delivery of water from its source to the plant and from there to the storage facility," The condition applicable for the said exemption has been mentioned at SL. No. 47A of the said Notification, which reads as under:- "If, a certificate issued by the Collector/District Magistrate/Deputy Commissioner of the District in which the plant is located, is produced to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction, to the effect that such goods are cleared for the intended use specified in column (3) of the Table." 7. In this connection, CBEC has issued clarification vide circular No. 659/50/2002-CX dated 6/9/2002 has clarified as follo....
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....below came to the conclusion that use of the pipes as Casing Pipes for tube wells which is not covered under the notification. 10. It is also fairly obvious that the goods supplied by the respondent will be covered under the second part of the notification which covers pipes needed for delivery of water from its source to the plant and from there to the storage facility. The question which needs to be answered is whether the pipes which are admittedly used as Casing Pipes will be covered under the category needed for delivery of water from its source to the plant , even though these are not used for carrying the water itself. We are of the view that the wording of the notification is to be interpreted in such a way as not to frustrate the ....