2017 (2) TMI 1035 - AT - Central Excise

N/N. 6/2002-CE dated 01.03.2002 - supply of weighing machines and conveyors - Whether the appellant is entitled for benefit of exemption N/N. 6/2002-CE dated 01.03.2002 at Serial No. 237 read with list no. 9 item 21 for supply of weighing machines and conveyors to M/s Non-Conventional Energy Development Corporation of Andhra Pradesh for setting up a Bio Gas Combustion Co-generation Power Project or not? Held that - As there are contrary decisions of this Tribunal Ron the issue, therefore, the matter be placed before the Hon ble President for constitute the Larger Bench to decide the issue.

Summary

Issues Involved:
- Entitlement to exemption under Notification No. 6/2002-CE for supply of weighing machines and conveyors to set up a Bio Gas Combustion Co-Generation Power Project.

Detailed Analysis:

1. Facts of the Case and Initial Ruling:
The appellant, a manufacturer of weighing machines and conveyors, cleared these items for a Bio Gas Combustion Co-Generation Power Project in Andhra Pradesh. The appellant claimed exemption under Notification No. 6/2002-CE, but the Revenue disagreed, leading to duty demand and penalty imposition. The Commissioner (A) confirmed the demand but dropped the penalty, prompting the appellant to appeal.

2. Appellant's Contentions:
The appellant argued that the weighing machines and conveyors qualify for exemption as devices producing energy from waste, citing a relevant decision. The appellant claimed entitlement to exemption under the specific items listed in the notification.

3. Revenue's Opposition:
The Revenue opposed the appellant's claim, referencing a previous case where a similar appellant was denied exemption under the same notification.

4. Tribunal's Consideration:
After hearing both sides, the Tribunal examined the relevant part of the notification, specifically Serial No. 237 and List 9 items related to non-conventional energy devices and waste conversion devices producing energy. The Tribunal noted that the appellant supplied goods to companies involved in energy production from waste and analyzed previous tribunal decisions on similar cases.

5. Precedents and Tribunal Decisions:
The Tribunal referred to the case of Rachitech Engineers Pvt. Ltd., where exemption was granted based on the nature of the devices and their role in energy production. In contrast, the Tribunal also mentioned the case of Garg Vibration Control Systems (P) Ltd., where exemption was denied due to the interpretation of the consumption location of the parts.

6. Contradictory Tribunal Decisions and Larger Bench Referral:
Given the conflicting decisions, the Tribunal decided to refer the matter to the Hon'ble President to constitute a Larger Bench to resolve the issue of whether the appellant is entitled to the exemption under the specific notification for supplying weighing machines and conveyors for the Bio Gas Combustion Co-Generation Power Project.

This detailed analysis encapsulates the key aspects of the judgment, including the arguments presented, tribunal considerations, relevant precedents, and the decision to seek clarification through a Larger Bench.