2014 (6) TMI 619 - AT - Central Excise

Denial of benefit of notification - Whether the state Electricity Board can be termed as State Government - notification no. 74/93 CE, dated 20.02.93 - Held that - State Electricity Board cannot be considered to be a Government or its Department and mere ownership of 100 % capital by State Government will not make the Electricity Board at par with the State Government. Accordingly, the benefit of Notification No. 74/93 CE is not available to the Electricity Board. - Following decision of Asstt. Engineer (Civil) V/s. CCE, Raipur reported as 2008 (9) TMI 105 - CESTAT NEW DELHI - Decided against assessee.

Summary

Issues involved: Entitlement to benefit of notification no. 74/93-CE for PCC Poles manufactured by a State Electricity Board.

Analysis:

1. Entitlement to Benefit of Notification: The main issue in this case is whether the appellant, a State Electricity Board, is entitled to the benefit of notification no. 74/93-CE for the PCC Poles manufactured by them. The appellant claimed exemption under this notification as goods manufactured in a factory belonging to the State Government and intended for use by a Government Department.

2. Denial of Benefit by Lower Authorities: The lower authorities denied the benefit of the notification, resulting in the confirmation of duty demand against the appellant for the PCC Poles manufactured and cleared during a specific period. The appellant argued that being a State Government entity, they should be eligible for the exemption provided under the said notification.

3. Interpretation of Notification: The issue of whether a State Electricity Board can be considered equivalent to the State Government for the purpose of availing the exemption under notification no. 74/93-CE was discussed. Referring to a decision by the Larger Bench of the Tribunal in a similar case, it was established that mere ownership of 100% capital by the State Government does not automatically equate the Electricity Board with the State Government. Consequently, it was concluded that the benefit of the notification is not available to the Electricity Board.

4. Decision and Conclusion: Based on the precedent set by the aforementioned decision, the tribunal found no merit in the appeal made by the appellant, ultimately rejecting the appeal. The judgment was pronounced in the open court, closing the case regarding the entitlement to the benefit of the notification for the PCC Poles manufactured by the State Electricity Board.