2018 (2) TMI 1549 - AT - Central Excise

Benefit of N/N. 41/11 dated 18.11.2011 - denial on the ground that M/s Jindal Power Ltd. had allotted a space by crossing road for manufacturing the pipes exclusively for M/s Jindal Power Ltd. which was considered as a separate site by Department - Held that - it appears that the Circular No. 456/22/99-CX dated 18.05.1999 issued by the Department prescribes that separate off road site will also be considered as the same included any premises made available to the manufacturer of the goods falling under Heading No. 68.07 and sub-heading 7308.50 of the Schedule to the Central Excise Tariff Act, 1985 - benefit to be allowed - appeal allowed - decided in favor of assessee-appellant.

Summary

Issues:
Denial of benefit under Exemption Notification No. 41/11 dated 18.11.2011 to the assessee-Appellants for the period of April 2013 to August 2013.

Analysis:
The appeal was filed against the Order-in-Original passed by the Commissioner of Central Excise, Raipur, concerning the denial of exemption to the assessee-Appellants for the period from April 2013 to August 2013. The assessee-Appellant, a sub-contractor of M/s Unitech Machines Ltd., was involved in constructing pipes for M/s Jindal Power Ltd. at a site allotted by M/s Jindal Power Ltd. The Department considered this site as separate and denied the benefit of the exemption. The main contention of the assessee-Appellants was that the goods were manufactured exclusively for M/s Jindal Power Ltd. at the allocated site and were used in the construction work at the same site. The counsel for the assessee-Appellants argued that for the previous period, relief was granted by the Department by extending the exemption under Notification No. 41/11 dated 18.11.2011. The Revenue, represented by the learned DR, supported the impugned order.

Upon hearing both parties and examining the relevant material, the Tribunal referred to Circular No. 456/22/99-CX dated 18.05.1999, which stated that a separate off-road site would be considered the same as any premises provided to the manufacturer of goods falling under specific headings of the Central Excise Tariff Act, 1985. In light of this circular, the Tribunal found no justification to uphold the impugned order denying the exemption. Consequently, the Tribunal set aside the impugned order and allowed the appeal filed by the assessee-Appellants.

In conclusion, the Tribunal ruled in favor of the assessee-Appellants, emphasizing that the Circular provided clarity on the treatment of separate off-road sites for manufacturing goods, which supported the assessee's claim for exemption under Notification No. 41/11 dated 18.11.2011.