TaxTMI 
TaxTMI 
2023 (12) TMI 246
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....ein after). Both the projects were awarded to the Principal Contractor against International Competitive Bidding (ICB). 2. The following documents were submitted by the Appellant: SIMHADRI SUPER THERMAL POWER PROJECT, STAGE-II (2 X 500 MW): (i) Project Authority Certificate (PAC), vide Ref No. CS 3530 110 2 POA, dated 04.02.2008 signed and issued by Shri R.K.S. Gahlowt, General Manager (CS/Th/I), Simhadri Super Thermal Power Project (2 x 500 MW) on behalf of NTPC Limited, wherein it is certified that M/s Bharat Heavy Electrical Limited, New Delhi have been awarded a contract for supply of certain goods; that the supply of the goods under the contract to be made to power project in India under the procedure of International Competitive Bidding in accordance with the provisions of paragraph 8.2(g) and 8.4.4 (iv) of the Foreign Trade Policy 2004-09. (ii) Letter No. 5/23/3006-ThII, dated 08.09.2006 issued by Ministry of Power, wherein the Ministry accorded mega power status to Simhadri Stage-II Power project by NTPC. (iii) Certificate by the Main Contractor to the Sub Contractor, vide Ref:BHE/PSSR/Proj/BOP/SIMH/Misc TANK, dated 14.12.2009 issued by Bharat ....
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....below the rank of a Joint Secretary to the Government of India in the Ministry of Power, will be entitled to exemption from basic customs duty and additional duty, subject to Condition No. 86. Condition 86, inter alia provides for certification by certain officers of Ministry of Power. For ease of reference, it is reproduced below: 86. (a) If an officer not below the rank of a Joint Secretary to the Government of India in the Ministry of Power certifies that - (i) the power purchasing State has constituted the Regulatory Commission with full power to fix tariffs; (ii) the power purchasing State undertakes, in principle, to privatise distribution in all cities, in that State, each of which has a population of more than one million, within a period to be fixed by the Ministry of Power; and (iii)The power purchasing State has agreed to provide recourse to that State's share of Central Plan allocations and other devolutions towards discharge of any outstanding payment in respect of purchase of power. (b) In the case of imports by a Central Public Sector Undertaking, the quantity, total value, description and specifications of the imported go....
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....domestic goods cleared for the said project. It was also emphasised that the sub-contractors are also entitled for the benefit of the same notification, which exempts contractor from the payment of Central Excise duty, subject to amendment in the contract before supply or subsequent to supply. He has also relied on various case laws in support of argument that in the given circumstances, they were entitled for the benefit of Notification No. 6/2006-CE. The following case laws have been relied upon: i) M/s Kanta Rubber Pvt Ltd., Vs CC, CE & ST, Hyderabad - IV [2017 SCC Online CESTAT 4119] ii) M/s Jai Fasteners (P) Ltd., Vs CC, CE & ST, Hyderabad - I [2016 SCC Online CESTAT 3080] iii) Studio Printall (New Delhi) Pvt Ltd., Vs Commissioner of C.Ex, Delhi- I [2014 SCC Online CESTAT 5077: (2015) 315 ELT 79] iv) Hindustan Colas Ltd., Vs Commissioner of C.Ex, Vadodara - I [2007 SCC Online CESTAT 2201: (2007) 219 ELT 430] v) CG Power & Industrial Solutions Ltd., Vs CGST, CC & CE [2018 SCC Online CESTAT 10033] vi) Hindustan Steel Ltd., Vs State of Orissa [(1969) 2 Supreme Court Cases 627] vii) Kent Intro Pvt Ltd., Commissioner of....
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....irector of the PSU, in case the imports are by the PSU certifying the quantity, the total value description and specification of the imported goods etc. It is obvious that there is no cross reference to customs Notification No. 20/2002-CUS in Central Excise Notification No. 6/2006 or vice versa. 13. Thus, when the admitted position is that the project to which the supplies have been made by the sub-contractor is against the ICB and the condition No.19, merely provides for one condition that is the goods should be otherwise exempted from the customs duty when exported into India. In the instant case, the said projects were otherwise eligible for exemption for project imports and were entitled for exemption in respect of such items, which would have been imported as projects imports, in terms of Notification No. 21/2002, subject to following the conditions stipulated therein. The argument advanced by the Appellant that the conditions of the certification of the Chairman and Managing Director is a must for Notification No. 6/2006 is correct for exported goods, however, in the case of domestic goods, when intended for use in project either directly or indirectly by the Contractor, w....
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....der the procedure of ICB. They have also specified that this is for supply of goods for SSTPP Stage-II (2x500 MW). There is also a certificate issued by Ministry of Power to NTPC certifying that Simhadri Stage-II (1000 MW), being set up by the NTPC in Andhra Pradesh is a Thermal Power Project of capacity of 1000 MW or more. It also certified that the power purchasing states have constituted Regulatory Commissionerate with full powers to fix tariff. 17. Similar certificate has also been issued by CEO, NTECL in respect of M/s BHEL, who is duly authorised to issue such certificate. It was also clarified that this is meant for NTPC, TNECL (Vallur TP Stage-I (2x500 MW)). It was also certified that the supply of goods under the contract is to be made to the power project in India is under the procedure of ICB. In this case also, the Ministry of Power has also given the due certificate certifying that the Power Project being set up by NTPC, Tamilnadu Energy Company Ltd., (Joint Venture of NTPC & TNEB) is a State Power Plant and fulfilling other conditions like power projects etc. In both these projects authority certifies, there is a provision for adding the name of sub-contractor at a....