2008 (7) TMI 740 - AT - Central Excise

Summary

Issues:
1. Eligibility for exemption under Notification No. 6/2002-C.E.
2. Denial of exemption by the Commissioner for not registering under Project Import Regulations, 1986.

Analysis:

Issue 1: Eligibility for exemption under Notification No. 6/2002-C.E.
The case involved the appellant, a manufacturer of power cables, supplying goods for projects by NTPC and Jindal Power Ltd. The appellant claimed exemption under Notification No. 6/2002-C.E. for goods supplied against international competitive bidding. The Commissioner denied the exemption, citing the appellant's lack of registration under Project Import Regulations, 1986. However, the Tribunal found that the goods supplied met the conditions for exemption, as evidenced by certificates from the agencies confirming the use of cables in the projects. The Tribunal held that the appellant had a prima facie case in their favor, satisfying the equal tax treatment requirement for imported and locally produced goods under international competitive bidding.

Issue 2: Denial of exemption for not registering under Project Import Regulations, 1986
The Commissioner's denial of exemption was based on the appellant's failure to register under Project Import Regulations, 1986. However, the Tribunal determined that fulfilling the conditions of Project Import Regulations for goods manufactured in India and supplied to projects in India was not necessary in this case. The Tribunal held that the appellant had met the requirements for exemption under Notification No. 6/2002-C.E. and that the question of Project Import Regulations compliance did not apply. Consequently, the Tribunal waived the pre-deposit of dues and stayed the recovery of the same until the appeal's disposal, ruling in favor of the appellant.

In conclusion, the Tribunal found in favor of the appellant, holding that they were eligible for exemption under Notification No. 6/2002-C.E. for supplying goods to projects by NTPC and Jindal Power Ltd. The Tribunal set aside the Commissioner's denial of exemption based on non-registration under Project Import Regulations, 1986, as it was deemed unnecessary in this context. The appellant was granted relief from pre-deposit requirements pending the appeal's final decision.