2018 (8) TMI 1439 - AT - Central Excise

Pipes cleared for various projects - benefit of N/N. 6/2002 dated 01.03.2002 as amended - Case of Revenue is that the pipes are not used for setting up of water treatment plant but used for distribution of water beyond first storage point - Held that - The condition attached to such exemption is that the assessee needs to produce certificate issued by the Collector/District Magistrate/Deputy Commissioner of District in which the plant is located - on perusal of said certificate produced, it is found that the said certificates clearly indicated that they were issued as required under N/N. 6/2006 dated 01.03.2006 and/or N/N. 6/2007 dated 01.03.2007 - the said factual findings are also not effectively controverted by the Revenue in their grounds of appeal - appeal dismissed - decided against revenue.

Summary

Issues Involved:
Interpretation of exemption under Notification No.6/2002 for pipes used in water projects.

Detailed Analysis:

Issue 1: Interpretation of Exemption Notification
The appeal was filed by the Revenue against the Order-in-Appeal, challenging the exemption claimed by the appellant for clearing pipes for various projects under Notification No.6/2002. The Revenue contended that the certificate issued did not clearly indicate compliance with the conditions stipulated in the board circular. The adjudicating authority confirmed the demands raised, leading to an appeal. The first appellate authority held that the appellants were eligible for exemption under Notification No.6/2007, relying on previous decisions and setting aside the Order-in-Original.

Issue 2: Arguments of the Departmental Representative
The Departmental Representative argued that the pipes were not covered under the notification as they were used for distribution of water beyond the first storage point. The lower authorities sought clarification and directed the respondent to provide project details. It was contended that the benefit of the notification would not apply as the pipes were not used as per the requirements, and the certificate did not clearly indicate compliance.

Issue 3: Respondent's Defense
The respondent, through their counsel, highlighted that they manufactured ductile iron spun pipes cleared under the relevant notifications. The pipes were integral parts of water supply projects, supported by certificates from District Collectors. Citing previous case laws where similar issues were decided in favor of the assessee, the counsel argued that the matter was settled by the Tribunal.

Judgment and Conclusion
Upon careful consideration, the Tribunal found that during the relevant period, pipes were cleared under the exemption notifications for water supply projects. The exemption required a certificate from the Collector indicating the intended use of the goods. The certificates provided by the respondent were found to comply with the requirements of the notifications. The Tribunal upheld the impugned order, noting that the issue was settled by previous case laws cited by the respondent's counsel. The appeal was rejected, confirming the legality of the order-in-appeal.