2018 (7) TMI 1362 - AT - Central Excise

Transmission of electricity to water supply plants - benefit of N/N. 3/2004-CE dated 08.01.2004 - case of appellant is that the finished goods were used for transmission of electricity to water supply plants in the lift irrigation scheme, and they are eligible for benefit of notification - Held that - It is undisputed that the appellant had cleared finished goods by claiming exemption under N/N. 3/2004 dated 08.01.2004 after following all the conditions laid down therein. The said certificates issued by the District Collectors are not contested by the Revenue - Identical/similar issue came up before the Bench in the case of Commissioner of Central Excise, Jaipur-1 Vs Cords Cable Industries Pvt Ltd 2016 (5) TMI 936 - CESTAT NEW DELHI , where it was held that Setting up of water supply plant is for the intended purpose covered by the terms of the notification. The explanation only shows the inclusive scope of the water supply plants - benefit of notification cannot be denied. Appeal dismissed - decided against Revenue.

Summary

Issues:
Demand of Central Excise duty on supply of ACSR Zebra conductors under Notification No. 3/2004-CE dated 08.01.2004.

Analysis:
The appeal was filed by the Revenue against the Order-in-Original regarding the demand of Central Excise duty on the supply of ACSR Zebra conductors. The respondent, a manufacturer of the finished goods, cleared them without duty based on a certificate from the District Collector under Notification No. 3/2004-CE. The Revenue later issued a show cause notice demanding differential duty, contending that the notification did not apply. The adjudicating authority ruled in favor of the respondent, stating that the finished goods were eligible for exemption under the notification as they were used for transmission of electricity to water supply plants in a lift irrigation scheme.

The Tribunal found that the issue was no longer res integra as the appellant had cleared the goods claiming exemption under the notification and had followed all conditions. The certificates issued by the District Collectors were not disputed by the Revenue. Referring to a similar case, the Tribunal held that the exemption notification applied to goods used for setting up water supply plants, and the exemption was correctly applied to the impugned goods in the present case. The Tribunal dismissed the Revenue's appeal, stating that the impugned order was passed after a detailed examination of all relevant points and could not be faulted.

The Revenue relied on another case to argue that the exemption under Notification No. 3/2004 was not applicable, but the Tribunal distinguished the facts of that case from the present case. Ultimately, the Tribunal concluded that the decision in the case of Cords Cable Industries Pvt Ltd covered the issue in favor of the respondent, affirming that the impugned order was correct and legal. Consequently, the appeal was rejected, upholding the decision in favor of the respondent.

In conclusion, the Tribunal upheld the decision that the finished goods were eligible for exemption under Notification No. 3/2004-CE, as they were used for transmission of electricity to water supply plants in a lift irrigation scheme. The Tribunal dismissed the Revenue's appeal, affirming that the impugned order was correct and legally sound, based on a detailed examination of the relevant facts and circumstances.