2025 (12) TMI 91

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....t, 1985. Apart from clearing their goods on payment of duty, they also cleared goods for Mega Power Projects without payment of duty in terms of Notification No.06/2006-CE dated 01.03.2006. The Department found that during the period from March 2010 to September 2011, the Appellant cleared excisable goods to M/s.Bharat Heavy Electricals Ltd., Hyderabad/Ranipet, Main Contractor under International Competitive Bidding (ICB, for short) for Mega Power Projects without payment of duty availing exemption under the aforesaid Notification. As per the ICB, the Appellant is the sub-contractor for the Project viz. Gas Turbine Generator Package for PPCL, Bawana (1500 MW) (Consignee: M/s.Pragati Power Corporation Ltd.) and another project viz. Combined ....

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....nder Section 11AC ibid. Aggrieved by the order of the Adjudicating Authority, an Appeal was filed by the Appellant before the First Appellate Authority who vide impugned Order-in-Appeal No.137/2016 dated 30.06.2016 upheld the OIO. Hence this Appeal before this forum. 3. Heard Ms. Nikta, Ld. Advocate for the Appellant and Shri N. Satyanarayana, Ld. Assistant Commissioner for the Respondent. 4. The short issue that arises for our consideration in this Appeal is, "whether the Appellant is eligible to avail exemption Notification No.06/2006-CE dated 01.03.2006 read with Notification No.21/2002-Cus. dated 01.03.2002 in respect of 'Combined Cycle Gas Turbine Mega Power Project for ONGC Tripura Power Company Ltd.' ?" 5. The facts as narra....

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.... Meghalaya, Manipur, Mizoram, Nagaland and Tirupura or (c)... .... .. (d).... ... ... (e)... ... ... (ii)Mandatory condition of Inter-State sale of power for setting mega power status has been removed. (iii)Goods required for setting up a mega power project, would qualify for the fiscal benefits after it is certified by an officer not below the rank of a joint Secretary to the Govt.of India in the Ministry of Power that (i) the power purchasing States have constituted the Regulatory Commissions with full powers to fix tariffs and (ii) power purchasing states shall undertake to carry out distribution reforms as laid down by Ministry of Power. (iv)Mega Power Projects would be required to t....

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....r has considered the issue by ignoring the spirit of Notification/circular dated 14.12.2009 supra. It is very unfortunate that without discussing about the circular issued by the Ministry of Power (supra), the First Appellate Authority has only held that 'the benefit of Notfn. No. 21/2002-Cus cannot be extended for the simple reason that the threshold capacity therein for Thermal Power Plant has been mentioned as 1000 MW or more as certified by an officer not below the rank of Joint Secretary to the Government of India, Ministry of Power'. We are afraid this observation of the lower Appellate Authority is contrary to his observation just above these lines in the OIA wherein he himself acknowledges the capacity of Tripura Project. When the c....