2017 (3) TMI 707

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....tional Highway-1 (NH-1). For this purpose they were manufacturing and using the Pre-stressed Concrete (PSC) Girders and Horizontal Members of Handrails. Their project office premises located at 234, Guru Amar Dass Nagar, Jallandhar were visited by the preventive staff of Central Excise Division, Jallandhar. They were informed that the companys pre-casting yard is situated at Bhatara Industrial Estate, near canal distributory, Jallandhar. Later, the agreement made on 16.06.1999 between the National Highways Authority of India (NHAI) and respondents in respect of project of four-laning of Jalandhar By-pass of NH-1 was produced.  In a statement, Sh. D.K. Agnihotri, General Manager of the respondent's company stated that they were engaged....

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..... In  the adjudication proceedings, the adjudicating authority vide impugned order dated 11.05.2006 confirmed the demand of Central Excise duty of Rs. 45,76,023/- alongwith interest and also imposed penalty of Rs. 45,76,023/- on the respondents. Being aggrieved, the respondents went in appeal before the Commissioner (Appeals) who held that the exemption under Notification No. 3/2001-CE dated 01.03.2001 and 6/2002-CE dated 01.03.2002 was available to the respondents and set aside order of the Adjudicating Authority. The Revenue is contesting the order of Commissioner (Appeals) before us. 5.  Ld. AR for the Revenue submitted that the Board Circular No. 456/22/99-CX dated 18.05.1999 had clearly laid down that the expression 'site'....

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....e parties and perused the records. 8.1  We find that the issue involved in this case is whether the exemption under Notification No. 3/2001-CE dated 01.03.2001 and 6/2002-CE dated 01.03.2002 as availed on the goods falling under Heading No. 68.07 manufactured by the respondents at site of construction and used in the construction work is admissible or not.  Briefly, the exemption reads as under: "all goods falling under Chapter Heading 68.07 are chargeable to Nil rate of duty if the said goods are manufactured at the site of construction for use in construction work at such site." While allowing the benefit of exemption, we find that the Commissioner (Appeals) has held as under: "Now I reiterate the relevant portion of....

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....rks (para 22.1 of the agreement) and the engineers and other workers of NHAI and RITES etc. had full access to it and since the site was near the site of construction of flyover, it can be constructed that the contractor had fulfilled his obligation as proposed in the agreement with regard to providing of the site in accordance with the terms of the agreement with the NHAI and thus there is compliance of the condition as provided in the CBECs Circular dated 18.05.99. The adjudicating authority has also held that manufacturing premises were not made available to the appellants by NHAI.  In this regard, the Tribunals judgment in the case of M/s Simplex Concrete Piles (India) Ltd. vs. CCE, Rajkot referred to above has clearly held th....