TaxTMI 
TaxTMI 
2024 (6) TMI 1318
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....tral Excise, Haldia Commissionerate wherein the Ld. Commissioner has dropped the proceedings initiated against the respondent under Show Cause cum Demand Notice C. No. V.Ch.84(15)46/CE/Hal/Adjn/2010/5987 dated 04.04.2013. 2. The facts of the case are that the respondent has cleared the goods manufactured by them by availing the benefit of exemption in terms of Notification No. 06/2006-C.E. dated 01.03.2006 (Sl. No. 91), as amended. The said Notification exempts goods supplied to Mega Power Projects wherein the contract is awarded on the basis of international competitive bidding. 2.1. A Show Cause Notice has been issued to the respondent on the ground that the respondent are not eligible for the said exemption, as the said goods are n....
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....on under Customs Notification No. 21/2002 (s. No.400). 3. Under Notification No. 21/2002-Cus. dt 01.03.2002 under Ch. heading 9801 (entry sl. No.400 with condition 86), exemption from customs duty required certificate issued by Joint Secretary, Government of India, Ministry of Power against the goods meant for Mega Power Project. On examination of Chapter Note 2 of heading 98 of the Customs Tariff, it is found that heading 9801 is to be taken to apply to all goods which are imported in accordance with the regulation made under Section 157 of Customs Act, 1962 and expression used under this heading shall have the meaning assigned to them in the said regulation.' Now, as per 'Project Imports Regulations, 1986' to allow su....
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....sides and perused the appeal documents. 7. We observe that the respondent has manufactured and supplied the goods by availing the benefit of exemption Notification No. 06/2006-C.E. dated 01.03.2006. We find that the goods supplied by the respondent are covered under Sl. No. 400 of Notification No. 21/2002-Cus. dated 01.03.2002 which clearly exempts goods imported for Mega Power Projects. The only condition prescribed in the said Notification is that the respondent should submit a certificate from an Officer not below the rank of Joint Secretary to the Government of India in the Ministry of Power. We observe that the respondent has produced the certificate from the competent authority to the effect that the goods are required for the Mega....
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....ocuments of all the projects furnished by the said assessee I notice that the conditions prescribed in 86 of entry Sl no 400 of the Customs Notification No. 21/2002-Cus dated 01.03.2002 for setting up of mega power project capacity of 1000 MW or more, that Officer not below the rank of Joint Secretary to the Government of India in the Ministry of Power should certify that the said goods are for mega power project, the power purchasing State has constituted the Regulatory Commission with full powers to fix tariffs and the power purchasing state undertakes, in principle, to private distribution in all cities, in that state, each of which has of more than one million, within a period to be fixed by the Ministry of Power have been absolutely fu....
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....ing under Chapter 72, which cannot be considered as materials falling under Heading No.98.01, and for that matter the same were not eligible for exemption under Notification No. 21/2002-Cus dated 01.03.2002. The Tribunal ruled out Department's contentions on this score to hold that wordings of the Notification No. 21/2002- Cus categorically indicates that the goods which are required for execution of mega power project are exempted. Following the ratio of such decision, I am inclined to hold that the goods in question were exempted from payment of Customs Duties by virtue of Notification No. 21/2002-Cus and condition No. 19 appended below the Notification No. 6/2006-CE having been fulfilled thereby, the said goods supplied against inter....