2005 (6) TMI 142 - AT - Central Excise

Summary

Issues:
Interpretation of Notification No. 57/95-C.E. for exemption eligibility based on the classification of 'turbine regulator' as part of 'turbine generator'.

Analysis:
The case involved a dispute regarding the eligibility of the benefit of Notification No. 57/95-C.E., dated 16-3-1995 to the respondents concerning a 'turbine regulator.' The ld. Commissioner (Appeals) had allowed the benefit of the notification to the respondents, considering the turbine regulator as part of the 'turbine generator.' However, the Revenue contended that the exemption was available only to the turbine itself, not to its parts, as per S. No. 16A of the Table annexed to Notification No. 205/88-C.E. The respondents argued that they supplied a 'turbine along with all associated equipments' under the contract with their customer. The Tribunal noted that the original authority had acknowledged that the goods supplied were a 'turbine generator and associated equipments,' indicating that what was removed from the factory was the turbine assembly, not just a part of it. Therefore, the Tribunal concluded that the benefit of the Notification was indeed available to the respondents as the subject-goods constituted the turbine assembly, making them eligible for the exemption under S. No. 16A of the Table annexed to the Notification.

The Tribunal rejected the ld. Commissioner (Appeals)' finding that the benefit of the Notification extended to parts of the turbine, emphasizing that the subject-goods were the turbine assembly itself, not individual parts. The Tribunal clarified that the benefit under the Notification was specifically for the turbine, not its parts. Since the contract was for the supply of a 'turbine generator and associated equipments,' the Tribunal held that the respondents were entitled to the benefit of the Notification. Consequently, the Tribunal dismissed the Revenue's appeal, affirming that the benefit of the Notification was available to the respondents based on the nature of the supplied goods as the turbine assembly, in accordance with the provisions of S. No. 16A of the Table annexed to the Notification.

In conclusion, the Tribunal's decision centered on the interpretation of Notification No. 57/95-C.E. in relation to the classification of the 'turbine regulator' as part of the 'turbine generator.' By analyzing the contractual terms and the nature of the supplied goods, the Tribunal determined that the benefit of the Notification applied to the respondents as the goods constituted the turbine assembly, entitling them to the exemption under the relevant provisions.