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2023 (7) TMI 536 - AT - Central ExciseExemption for setting up of water supply plant under N/N. 3/2004-CE dated 08.01.2004 - Clearance of transmission line stringing accessories by the appellant for supply to M/s Neyveli Lignite Corporation Ltd., Barsingsar Thermal Power Project for utilization of the same for setting up of 2 X 125 MW Power Plant at Barsingsar RA-8 Water Carrier System from IGNP Canal RD 800.6 to Thermal Power Plant, Barsingsar. Denial of benefit on the ground that the exemption is available for setting up of water supply plant not for power plant. HELD THAT - On going through the Certificates, it is observed that the said goods were sold by the appellants, which are to be used for demineralization of water and thereafter, to be used for Thermal Power Plant for generation of electricity, which clearly shows that the said goods cleared by the appellants are for treatment of water. In that circumstances, the benefit of Notification No. 3/2004-CE dated 08.01.2004 cannot be denied - the appellant has rightly cleared the goods without payment of duty by way of availing the benefit of Notification No. 3/2004-CE dated 08.01.2004. Therefore, no duty is sustainable against the appellant. There are no merit in the impugned order and the same is set aside - appeal allowed.
Issues Involved:
The judgment involves a challenge to a demand of duty along with interest on the clearance of transmission line stringing accessories without payment of duty under Notification No. 3/2004-CE dated 08.01.2004 for setting up a power plant. Comprehensive Details: Issue 1: Challenge to demand of duty along with interest The appellant, a manufacturer of excisable products, cleared transmission line stringing accessories without duty payment under Notification No. 3/2004-CE dated 08.01.2004 for supply to a Thermal Power Project. The Revenue alleged that the exemption was for a water supply plant, not a power plant, leading to a show-cause notice and an impugned order against the appellant. Issue 2: Examination of Certificates The appellant produced a Certificate of District Collector & Magistrate, Bikaner, and a certificate from the Project Head, Barsingsar Project. These certificates indicated that the goods were to be used for demineralization of water and subsequently for the Thermal Power Plant's electricity generation, demonstrating that the cleared goods were for water treatment purposes. Issue 3: Benefit of Notification No. 3/2004-CE Based on the certificates and the purpose of the goods, the Tribunal observed that the appellant rightfully cleared the goods without duty payment by availing the benefit of Notification No. 3/2004-CE dated 08.01.2004. Consequently, the Tribunal held that no duty was sustainable against the appellant. Issue 4: Decision and Relief The Tribunal found no merit in the impugned order and set it aside, allowing the appeal with consequential relief to the appellant, if any. The judgment was dictated and pronounced in open court. This summary provides a detailed overview of the issues involved in the legal judgment, highlighting the key arguments, evidence presented, and the Tribunal's decision regarding the challenge to the demand of duty along with interest for the clearance of transmission line stringing accessories.
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