2016 (8) TMI 661 - AT - Central Excise

Demand alongwith interest and penalty - cleared power cables claiming the exemption Notification No.6/2002-CE without satisfying the conditions thereof - certificate from D.G.H.S. required in terms of para (c) (i) of condition 29 of Notification 21/02-Cus. was not produced - Held that - the DGHS Certificate has since been produced. The said certificate was issued by DGHS on 02.03.2009 and clearly mentions the purchase order which is the same purchase order under which the appellant supplied the cables. The quantity mentioned in the certificate 2500 KMtrs. 2 numbers can be given a reasonable interpretation that quantity covered was 2500 Metres under each of two invoices because there are only 2 invoices which were issued for supply of power cables for quantities 2499 K.Ms. under each of them. Demand alongwith interest and penalty - power cables are not covered under list No.12 of Notification No.21/02 -Cus. dated 01.03.2002 - Held that - the contention of appellant that power cables would certainly be qualified to be covered under the scope of Sl. No.24 of list which covers interalia, stores, spares, materials for running, repairing or maintenance of goods specified in the said list is accepted. Also it is found that in Sl.No.20 of the said list 12 apart from CDP cable and logging cable, connectors are also covered and power cables can also qualify arguably as connectors. Further this issue was tilted clearly in favour of the appellant when the certificate issued by DGHS covered the impugned goods. The said certificate has been issued by DGHS for the purpose of Notification which implies that power cable covered in the certificate was eligible for coverage under list 12 of Notification. - Decided in favour of appellant

Summary

Issues:
Demand upheld for clearance of power cables claiming exemption under Notification No.6/2002-CE without fulfilling conditions.

Analysis:
The appellant contested the demand upheld by the Commissioner (Appeals) on the grounds that power cables were not covered in list 12 of Notification No.21/02-Cus. and the required certificate from DGHS was not initially produced. However, the appellant later submitted the DGHS certificate, which mentioned the purchase order under which the cables were supplied. The tribunal interpreted the quantity mentioned in the certificate to be reasonable, covering the cables supplied under two invoices.

The appellant argued that power cables could be considered as stores or spares for running, repairing, or maintaining goods listed in list 12, which included various machinery and equipment. The tribunal agreed with this interpretation, noting that power cables could qualify as connectors listed in the same category. The certificate issued by DGHS for the goods implied their eligibility for coverage under list 12 of Notification No.21/02-Cus.

In conclusion, the tribunal found the impugned order unsustainable based on the analysis presented. The appeal was allowed, setting aside the demand upheld by the Commissioner (Appeals).