2015 (2) TMI 224 - AT - Central Excise

Waiver of pre deposit - Exemption under Notification No. 6/06 dated 01/3/06 (Sl. No. 7) - exemption to the pipes of any type needed for delivery of water from water sources for the water treatment plant and from the treatment plant to the storage facility - Non production of certificate from the District Collector regarding the use of the pipes for water supply project - Held that - While the certificates regarding requirement of MS Pipes would also cover the MS Specials as the MS Specials are only a sort of MS Pipes of smaller length, the certificates issued for PSCC Pipes would not cover the MS Specials, as while PSCC Pipes fall under Chapter 67 but the MS Specials fall under Chapter 73. In view of this, this is not the case for total waiver. The appellant are, therefore, directed to deposit an amount of ₹ 3,00,000 within a period of eight weeks for compliance with the provisions of Section 35F - Partial stay granted.

Issues:
1. Duty demand on supply of MS Specials for water supply projects.
2. Exemption under Notification No. 6/06-CE dated 01/3/06.
3. District Collectors Certificates not mentioning MS Specials.
4. Appeal against Joint Commissioner's order-in-original.
5. Stay application and compliance requirements.

Analysis:
1. The case involved a duty demand of &8377; 26,43,209/- against the appellant for supplying MS Specials for various water supply projects. The appellant claimed exemption under Notification No. 6/06 dated 01/3/06, which required a certificate from the District Collector regarding the use of the pipes for water supply projects. The Joint Commissioner confirmed the duty demand and imposed a penalty. The Commissioner (Appeals) upheld the order, leading to the current appeal.

2. The appellant did not appear, and the stay application was decided ex-parte. The learned DR opposed the stay application, emphasizing that the District Collectors Certificates did not cover the MS Specials, which were different from MS Pipes or PSCC Pipes. The exemption was subject to the production of a certificate specifically mentioning the pipes used for water supply projects.

3. The Tribunal considered the submissions and found that the District Collectors Certificates only mentioned PSCC Pipes, not MS Specials. While the appellant argued that MS Specials should be covered under the certificates mentioning MS Pipes, the Tribunal differentiated between PSCC Pipes falling under Chapter 67 and MS Specials falling under Chapter 73. As a result, the Tribunal directed the appellant to deposit &8377; 3,00,000/- within eight weeks for compliance, with the requirement of pre-deposit of the balance amount waived upon compliance.

4. The judgment highlighted the importance of specific mention of the supplied goods in the District Collectors Certificates for availing duty exemptions under relevant notifications. The differentiation between various types of pipes based on their classification under the Central Excise Tariff played a crucial role in determining the applicability of exemptions. The Tribunal's decision focused on the legal requirements and technical classifications to ensure compliance with the law.

5. The judgment provided a detailed analysis of the issues related to duty demands, exemptions, certificate requirements, and compliance procedures. It underscored the significance of accurate documentation and classification in availing duty exemptions and the consequences of non-compliance. The Tribunal's decision aimed to maintain the integrity of the excise duty system while providing clarity on the interpretation of relevant notifications and certificates in such cases.

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