9911796707
|
Home
Issues: Eligibility of circuit breakers for exemption under Tariff Heading 98.01 for substantial expansion in power distribution network.
In this case, the Appellate Tribunal CESTAT, New Delhi, addressed the issue of the eligibility of circuit breakers and connected items imported by an Electricity Board for improving their transmission and distribution network. The matter was remanded by the Hon'ble Supreme Court based on an appeal. The Apex Court clarified that 'power project' under Tariff Heading 98.01 encompasses projects involved in generating, transmitting, and distributing electricity. The Tribunal was directed to determine if the imported goods would result in a substantial expansion (more than twenty-five percent) in the capacity of the appellant's network, allowing both parties to present further evidence. The Revenue contended that the goods should lead to substantial expansion in the overall distribution capacity, while the respondent argued for eligibility even with expansion in specific distribution units. The respondent provided evidence of substantial expansion in various substations, meeting the requirement of substantial expansion under the heading. The Tribunal found that the respondent was entitled to the concessional rate under heading 98.01 for 9 breakers installed in substations showing substantial expansion, while rejecting the claim for the remaining breakers. The appeal was partly allowed based on these findings.
|
