TaxTMI 
TaxTMI 
2018 (9) TMI 1568
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.... a project for setting up independent 2 X 500 MW thermal power plant at Chandrapur and Bhusawal by M/s Maharashtra State Power Generation Co. Ltd. (MAHAGENCO) under International Competitive Bidding. The appellant availed excise duty exemption on goods cleared for the aforesaid project in terms of Sl. No. 91 of Notification no. 06/2006-CE dt. 01.03.2006. According to the said Notification, excise duty is exempted if the customs duty is exempt on such goods when imported. The goods required for setting up of Mega Power Project are exempt from payment of customs duty on import under Sl. No. 400 of Notification No. 21/2002-Cus. dt. 01.03.2002. 1.2 A Show Cause Notice dt. 07.07.2011 was issued to the assessee by the Revenue proposing to deny....
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....d March 2011 to February 2012, etc. 1.3 The assessee-appellant in response to the above Show Cause Notice filed its detailed reply, inter alia contending that its claim was in order. The Ld. Commissioner-adjudicating authority vide impugned order dated 30.11.2011 however, rejected the explanation/submissions of the appellant and confirmed the demand as proposed by him in the Show Cause Notice. Seriously aggrieved by the same, the assessee is in appeal before this forum. 2. Heard Shri. D. Santhana Gopalan, Ld. Advocate for the assessee and Shri. B. Balamurugan, Ld. Department Representative for the Revenue. 3. During the course of hearing, the Ld. Advocate for the assessee submitted that on an identical set of facts, this Bench of t....
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.... Plant of capacity of 1000 MW (2x500 MW). b) Certified that (i) the power purchasing States have constituted the Regulatory Commissions with full powers to fix tariff; (ii) the power purchasing States shall undertake to carry out distribution reforms as laid down by Ministry of Power. Sd/- (I.C.P. Keshari) Joint Secretary to the Government of India 7. It can be seen that even though the word expansion is used, it is clearly stated that the power project is being set up by MAHAGENCO. The appellants had taken up the issue with MAHAGENCO and the Ministry has issued clarification vide letter dt.26.10.2010. The relevant portion of the said letter is reproduced as under :- F.No.5/6/2008-S.Th Government of India Ministry of....
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....(i) the mega certificate has been issued to the aforesaid project on the basis of the proposed installed capacity and fulfilment of other applicable conditions as evidenced from the documents submitted by the MAHAGENCO Project. (ii) the Units 8 & 9 of 500 MW each at Chandrapur Project of MAHAGENCO is an independent power project and not an expansion project of a Mega Power Project in terms of notification No.137/2009-Customs dated 11th December,2009. This is also corroborated by the fact that the existing facilities (i.e., Units 1 to 7) have not been certified as a Mega Project. Sd/- (I.C.P.Keshari) Joint Secretary to the Government of India 8. Thus it is unequivocally clarified by the Ministry that power project is not....
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....es. I am inclined to follow the status as recognized by the Ministry of Finance itself under Sl.No.507 of Notification No.12/2012-Cus as amended on 10.09.2012. This does not amount to any retrospective exemption. The effect of the amendment dated 10.09.2012 is only to communicate and clarify the status of the projects, which should be taken to mean that it was always meant to be so. 4.16 In view of the above discussion, I hold that the goods supplied by M/s.BHEL against ICB to the Chandrapur and Bhusawal Mega Power Projects during the period from March 2011 to February 2012 qualify for the exemption under Notn.No.6/2006-C.E. dated 01.03.2006 (Sl.No.91 read with Condition No.19), as the goods, if imported into India, would be exempt....