TaxTMI 
TaxTMI 
2024 (10) TMI 1538
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.... dated 28th July, 2010, goods supplied to Mega Power Projects are exempted for payment of Central Excise Duty subject to fulfillment of certain conditions as provided under Sr. No. 28 of the Notification No. 31/2010 dated 28th July, 2010. 3. The department has rejected the refund claim of the appellant observing that the appellant have failed to fulfill the conditions has provided under Sr. No. 28 of exemption Notification No. 31/2010-CE dated 28th July, 2010. The matter has reached up to the level of the Commissioner (Appeals) who has also found that the appellants are not entitled for the refund of the Central Excise Duty paid by them on clearance of EOT cranes supplied to Amrawati Mega Power Project. 4. We have heard the learned advocate appearing for the appellant who has taken me through the record of the appeal and had shown that the appellants have fully complied with the condition No. 28 of the Notification No. 31/2010-CE dated 28th July, 2010. He has also relied upon the Hon'ble Supreme Court decision in case of Bonanzo Engeering Chemicals Pvt Ltd Vs Commissioner of Central Excise reported under 2012 (277) ELT 145 (supra). I have also heard the learned departmenta....
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....ification and Condition No. 28 primarily provides that an officer not blow the rent of the Chief Engineer has to certify that the subject goods are required for setting up a Mega Power Project. It is requirement under the condition no. 28 that Chief Executive Officer of the project has to furnish an undertaking that said goods will be used only for Mega Power Project and not for any other purpose and also undertaken to pay the Central Excise Duty in case of the non compliance of the basic requirement that is the goods need to be used for setting up of the Mega Power Project. We find that the necessary under taking has been provided to the Deputy Commissioner of Central Excise by the Chief Executive Officer of M/s. Indiabulls Power Limited on behalf of M/s. Larsen and Toubro dated 01.02.2011, the copy of the same is reproduced below : - We have also perused the relevant invoice which have been issued by the appellant which is reproduced here:- The perusal of above two documents make it clear that the goods were meant for setting above Mega Power Project and the necessary undertaking as required under condition no. 28 of the exemption Notification no. 31/2010 dated 28th July, 2....
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.... in the exemption clause then it being in nature of exception is to be construed strictly and against the subject but once ambiguity or doubt about applicability is lifted and the subject falls in the notification then full play should be given to it and it calls for a wider and liberal construction. 5. A construction which results in inequitable results and is incongruous, has to be avoided. 15. In Associated Cement Companies Ltd. v. State of Bihar, (2004) 7 SCC 642, this Court while explaining the nature of the exemption notification and also the manner in which it should be interpreted has held: "12. Literally "exemption" is freedom from liability, tax or duty. Fiscally it may assume varying shapes, specially, in a growing economy. In fact, an exemption provision is like an exception and on normal principle of construction or interpretation of statutes it is construed strictly either because of legislative intention or on economic justification of inequitable burden of progressive approach of fiscal provisions intended to augment State revenue. But once exception or exemption becomes applicable no rule or principle requires it to be construed strictly.....
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.... excise duty which would have been leviable at the time of clearance of the said goods but for this exemption. The above undertaking is given as required under Notification No 8/2008-CE dt 1.3.2008 for the purpose of avallment of exemption of excise on the goods supplied by M/s. Brady& Morries Engg. Co. Ltd., Plot no. 506, Phase-IV, G.I.D.C Vatva, Ahemadabad-382445, Sarasa- Kanera Road -sub vendor of M/s L&T In terms of the PO No. A02520/EPR/00008 dated 17TH December, 2010. Reberd Fondlab Power Limited. INDIAB Ranjit Gu Chief Executive Officer Indiabulle Power Limited. 5x270 Amraval Power Project Plot No. D2 & D2 (part). At Additional Industrial Area. Village Nandgaonpeth, District Amravall Maharshtra-444901 Indiabulls Power Limited. (Formarly sown as Sophie Power Company Limted) For, By Mers Eng. Co New Authorised Signature Corp. Office: "Indiabus House 446-451, Udyog Vihar Phase-V Gurgaon-122001, Tel.: +91 124 3081930 Fax: +91 124 3051948 Ragd. Office: E-29, First Floor Connaught Place, New Delhi-110001, Tel: +91 11 41523700 Document 2 Larsen & Toubro Limited Engineering Construction & Cont....