2016 (10) TMI 478 - AT - Central Excise

Demand of duty with interest - electric wires and cables - N/N.06/2006-CE dated 01.03.2006 - whether the product namely electric wires and cables classifiable under CETH 8544 4990, supplied under International Competitive Bidding to Megha Power Project is eligible for exemption from duty under Notification No. 06/2006-CE dated 01.03.2006 and whether condition of Notification No. 06/2006-CE has been fulfilled? - Held that - all the items of machinery as well as all components or raw materials for manufacture of the machinery and their components, required for initial setting up of a unit etc. of specified Power Project (alongwith other plants/ projects) are classified in Chapter Heading 98.01 of Customs Tariff. Therefore, there cannot be any dispute on subject items, Electric Wires & Cables as the facts stand are classifiable under Chapter Heading 98.01 of Customs Tariff - goods entitled to the benefit of exemption Notification No. 6/2006-CE dated 01.03.2006 - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Classification of electric wires and cables under CETH 8544 4990 for exemption from duty under Notification No. 06/2006-CE.
2. Fulfillment of conditions of Notification No. 06/2006-CE for duty exemption.
3. Certification by Project Authority for eligibility under the notification.
4. Interpretation of Chapter Heading 9801 of Customs Tariff for classification of goods.

Analysis:
1. The appellant, M/s Rallison Electricals Pvt. Limited, appealed against an order confirming Central Excise duty of ?60,68,280/- on electric wires and cables supplied for the Megha Power Project. The issue revolved around the classification of these products under CETH 8544 4990 for exemption under Notification No. 06/2006-CE.

2. The appellant contended that they fulfilled the conditions of Notification No. 06/2006-CE and were entitled to the exemption, while the Revenue, represented by the ld. AR Sh. Amresh Jain, supported the findings of the impugned order denying the exemption.

3. The impugned order raised concerns about the classification of the goods under Chapter Heading 9801 of the Customs Tariff and the absence of a required certificate issued by the CMD of NTPC. However, the appellant had supplied the goods for the Mega Power Project under International Competitive Bidding and obtained a Project Authority Certificate (PAC) from the Additional General Manager of NTPC, Ms. Reeta Bandopadhyay, who was authorized to issue such a certificate.

4. The Tribunal analyzed Chapter Heading 9801 and concluded that electric wires and cables fell under this classification, making them eligible for the benefit of the exemption under Notification No. 06/2006-CE. Therefore, the impugned order was set aside, and the appeal was allowed with consequential relief, if any, pronounced on 31.08.2016.