2000 (5) TMI 375 - AT - Central Excise

Summary

Issues Involved:
The issue involved in the judgment pertains to the classification and eligibility for exemption under Notification No. 78/90-C.E., dated 20-3-90 for Scrubbing Systems and their parts.

Classification of Scrubbing Systems:
The Assistant Commissioner initially classified Scrubbing Systems along with parts under Tariff Sub-Heading 84.21, granting them the benefit of the Notification. However, the Commissioner (Appeals) reversed this decision, arguing that parts of the Scrubbing System should be classified differently and that the Notification did not explicitly extend to parts. The Commissioner (Appeals) allowed the benefit only to the item "Scrubber" as a specified item, leading to the appeal before the Tribunal.

Interpretation of Notification No. 78/90-C.E.:
The appellants contended that they received an order for the supply of a Scrubbing System, which includes various parts and components assembled on-site. They argued that the entire system, including parts like Ducts, Tanks, and Platforms, should be eligible for the Notification's benefit. The appellants provided a certificate from the Ministry of Environment and Forests confirming the goods' intended use for pollution control, meeting the Notification's conditions.

Exemption Eligibility and Board's Order:
The Tribunal noted that the Notification requires certification from a Deputy Secretary in the Ministry of Environment and Forests for goods intended for pollution control to qualify for the exemption. The Central Board of Excise and Customs had issued an order emphasizing that the benefit of the Notification applies to machinery, components, and equipment even in CKD and SKD conditions, provided they form part of a complete pollution control system.

Judgment and Conclusion:
The Tribunal found that the entire Purchase Order was for a Scrubbing System, not just parts and equipment. The Deputy Secretary had certified the goods for pollution control purposes, aligning with the Notification's intent. The Tribunal held that the Scrubber-counter current mentioned in the Notification refers to a complete Scrubbing System, entitling the appellants to the benefit. Consequently, the appeals were allowed in favor of the appellants, granting them the consequential reliefs.