2012 (5) TMI 171 - AT - Central Excise

Claim of benefit under Notification no. 63/95-CE dated 16.06.1995 - Held that - Notification no. 63/95-CE grants duty exemption on goods manufactured by specified public undertakings and are for supply to the defence for official purposes - company to whom the goods have been supplied by the appellant, is one of the organizations specified in the said notification and further, from the certificate issued by company, it is seen that the goods supplied by the appellant has been used in the manufacture and supply of equipment for defence purposes and the said - stay granted. Claim of benefit under Notification no. 3/20045-CE dated 08.01.2004 - Held that - The appellant has not produced any certificate mentioning that the goods are required to be supplied for setting up of Water Supply Plant/Project from the District Collector/Deputy Commissioner required to claim benefit of the Notification - stay granted as appellant has already depsosited the amount. Claim of benefit under Notification no. 6/2006-CE dated 01.03.2006 under International Competitive Bidding procedure - Held that - The benefit under the said notification is available for the goods that are required for setting up of any mega power project so certified by an officer not below the rank of a Joint Secretary to the Government of India in the Ministry of Power - the appellant has supplied the goods for the 4 x 250 MW (1000 MW) power plant at Raigad and they have also produced project authority certificate in respect of such supplies thus the appellant is eligible for exemption - stay granted.

Summary

Issues:
- Benefit under Notification no. 63/95-CE for supplies to defense
- Benefit under Notification no. 3/2004-CE for Water Supply projects
- Benefit under Notification no. 6/2006-CE for supplies to Jindal Power Ltd.

Benefit under Notification no. 63/95-CE for supplies to defense:
The appellant, a manufacturer of Material Handling Equipment, cleared goods to M/s Bharat Earth Movers Ltd. (BEML) claiming benefits under various notifications. A show cause notice was issued proposing denial of benefits under Notification no. 63/95-CE. The Tribunal considered the scope of the notification and previous judgments, concluding that goods supplied to BEML for further manufacture and supply to defense are eligible for the benefit. The appellant was found prima facie eligible for this exemption.

Benefit under Notification no. 3/2004-CE for Water Supply projects:
Regarding the claim under Notification no. 3/2004-CE for supplies to Water Supply projects, the appellant failed to produce the required certificate from the designated authority. Instead, a certificate from the Chief Engineer, Kerala Water Authority was submitted. As the notification specifies the authority for issuing the certificate, the appellant's failure to comply with this condition led to the denial of the benefit under this notification.

Benefit under Notification no. 6/2006-CE for supplies to Jindal Power Ltd.:
For supplies to Jindal Power Ltd. under Notification no. 6/2006-CE, the appellant supplied goods for a 1000 MW power plant at Raigad and produced the necessary project authority certificate. The Tribunal found the appellant prima facie eligible for exemption under this notification. Except for supplies to Water Supply Projects, the appellant successfully demonstrated a prima facie case for the waiver of pre-deposit of the dues adjudged against them. The Tribunal granted a waiver from pre-deposit of the balance of dues and stayed recovery during the appeal process.