2008 (9) TMI 847 - AT - Central Excise

Summary

Issues:
1. Change of name of Respondent Company due to amalgamation.
2. Dispute over duty exemption for spares used in captive power plant.
3. Eligibility for exemption to spares of power plant.

Issue 1: Change of name of Respondent Company due to amalgamation
The Respondents filed Miscellaneous Applications to change the name of the Respondents in three Appeals and three Cross Objections from M/s. Indian Charge Chrome Ltd. to M/s. Indian Metal & Ferro Alloys Ltd. The Tribunal allowed the name change due to the amalgamation of the Respondent Company in M/s. Indian Metal & Ferro Alloys Ltd., approved by the jurisdictional High Court.

Issue 2: Dispute over duty exemption for spares used in captive power plant
In Appeal No. CDM-17/05, the dispute revolved around duty exemption for spares used in the captive power plant, with the Department appealing against the lower appellate Authority's decision to allow the exemption. The Department's appeal was based on a letter directing recovery of duty on spares and consumables. However, the Tribunal had previously allowed duty exemption to the Respondents for the captive power plant as a whole, with the Supreme Court upholding the Tribunal's decision. The Tribunal held that the duty exemption applied to spares imported for the captive power plant, and there was no basis for proportionate recovery of duty due to surplus power sales.

Issue 3: Eligibility for exemption to spares of power plant
In Appeal No. CDM-23/05 & 59/05, the issue was the eligibility for exemption to spares of a power plant. The lower appellate Authority had granted the benefit to the Appellants, determining that the spares for the power plant fell under a specific notification. The Tribunal, referring to a previous decision, concluded that the spares for the power plant were eligible for exemption as capital goods under the relevant notification. Consequently, the Tribunal dismissed all three Appeals filed by the Department and disposed of the Cross Objections.

This judgment clarifies the application of duty exemptions for spares used in power plants and emphasizes the importance of previous decisions in determining eligibility for such exemptions. The Tribunal's analysis focused on the specific language of relevant notifications and the precedent set by previous rulings, ultimately leading to the dismissal of the Department's appeals.