2018 (5) TMI 1455

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....ng the months of July 2008 to October 2008, they cleared PVC pipes for use in drinking water supply project without payment of duty in terms of Notification No. 6/2006-CE dated 1.3.2006. Periodical show cause notices were issued proposing to deny the benefit of notification alleging that the supplies made to the contractor is not eligible for exemption for the reason that from the certificate issued by the relevant authority, it is not clear whether the pipes are used to draw water from the source to storage reservoir or as a part of integral water supply project. After due process of law, the original authority confirmed the demand, interest and imposed penalties. In appeal, Commissioner (Appeals) confirmed the demand but set aside the pen....

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....to storage reservoirs. It is not necessary to establish the diameter of the pipes used by the appellant and the appellant has complied with Sl. No. 2 of Sl. No. 7 of the notification. A revised certificate dated 21.10.2008 issued by the District Magistrate would also show that the pipes were used from the Krishna River / source to treatment plant at Yalparatti and from there to storage reservoirs. The benefit has been denied by wrongly interpreting the application of notification and also without considering the certificates produced by the appellant. He prayed that the demand may be set aside. 4. The ld. AR Shri R. Subramaniam supported the findings in the impugned order. 5. Heard both sides. 6. For better appreciation, the relevant par....

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....he District Magistrate reads as under:- "As such on the basis of report of the Executive Engineer, P.R.E. Division, Yadgir, it is hereby certified that the materials detailed in the Annexure to this certificate are intended to be used for pumping of raw water from Bhima river to treatment plant and there to storage reservoirs at Anur -K and8 other villages in Yadgir Taluk, dist: Gulbarga." 8. Further, the revised certificate dated 21.10.2008 also reads as under:- "This is to certify, that the said materials are required for pumping raw water from Krishna river to treatment plant at Yalparatti and from there to storage reservoirs at Khemalapur and other 5 villages in Raibag taluka of Belgaum District. And also items of machinery includi....