2017 (3) TMI 1002

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.... Condenser and a Fin Fan Cooler Assembly from M/s Shreeram EPC Pvt. Ltd., who were awarded a contract for setting up a 77 MW coal based captive power plant on EPC basis in an International Competitive Bidding by OPG Power Generation Pvt. Ltd. The Project Implementation Authority M/s OPG Power Generation Pvt. Ltd. has issued a Project Authority Certificate wherein the said authority had allowed M/s Shreeram EPC Ltd. and GEI Industrial Systems Ltd. to import various goods without payment of duty and also to procure from indigenous sources without payment of duty. The appellant sought benefit of exemption from central excise duty for the said goods manufactured under Notification No.6/2006-CE dated 1.3.2006. The lower authorities on scrutiny o....

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....ere the name of the appellant was specifically mentioned as sub-contractor.The appellant has sought the benefit of exemption Notification as the law is settled by the Tribunal in the case of CST Ltd. vs. C.C. & C.E., Hyderabad -I - 2007 (217) ELT 513 (Tri- Bang.); Sarita Steel vs. C.C.E., Visakhapatnam - 2011 (264) ELT 313 (T) and Cords Cables Industries Ltd. vs. C.C.E., Jaipur -I - 2011 (267) ELT 258 (Tri-Del.). 3. The Ld. A.R. for Revenue on the other hand draws our attention to the findings recorded by the adjudicating authority in paragraph No.17 of the impugned order. He submits that the appellant had imported items i.e. non-alloy steel plate, CS tube, aluminium coil, Fin Stock/strip, Axial Floe Impeller etc. by availing benefit of No....

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....upon the said project implementation certificate issued by the OPG Power Generation Pvt. Ltd. the appellant imported various raw material required for manufacturing Fin Fan Cooler. The appellant consumed these imported duty free raw materials for manufacturing of coil to be used in Air Cooled Condenser and Fin Fan Cooler Assembly and cleared the same to the site where 77 MW coal based captive power plant being erected. 6. We find that the adjudicating authority is denying the exemption notification to the appellant only on the ground that the appellant had not participated in ICB and that he had imported the raw material. We find that similar/identical issue was before the Bench in respect of the Notification precursors the Notification No....

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....ternational Competitive Bidding". There is absolutely no need that the appellants themselves should have been the bidder in International Competitive Bidding. In huge projects, the main contractor does not do everything. There is always a system of sub-contractors. If we take a view that the goods cleared by sub-contractors are not entitled for exemption on the ground they are not the bidders, the very purpose of the Notification would be defeated because the main contractor will be having hundreds of sub-contractors in Mega Projects. In our view, inasmuch as the appellants had supplied the goods to M/s. BHEL, who are the bidders of International Competitive Bidding, the condition of the Notification is satisfied and there is no justificati....