2012 (11) TMI 561 - HC - Central Excise

Benefit of Notification No. 1/2011-C.E. (N.T.) - benefit under this notification shall not be admissible unless the unit claiming benefit in terms of this notification reverse the input credit, if any, taken in respect of inputs used in manufacture of such goods on which the said duty of excise was not levied - goods were not manufactured at the site of the construction for use in the construction work at the said site Held that - Delhi Metro Rail Corporation Ltd. had contracted and called upon the respondent-assessees to construct pre-fabricated components of different segments to be used in elevated viaducts or manufacture of rings for the tunnel, launching girders and trusses in respect of a project of the said Corporation at Delhi - casting yard itself constitutes the construction site. From the said construction site components have been moved to the different locations where elevated viaducts of the tunnel were being constructed - construction was done virtually all over Delhi and construction sites were interconnected, it cannot be said that any substantial question of law arises in favor of assesse

Summary

Issues:
1. Application for condonation of delay in refilling the appeal.
2. Appeals by the Commissioner of Central Excise against the order of the Tribunal.
3. Interpretation of Notification No. 1/2011-C.E. (N.T.) regarding exemption from duty of excise.

Issue 1: Application for Condonation of Delay
The application sought condonation of an 82-day delay in refilling the appeal due to a change in standing counsel. The court considered the reasons provided and condoned the delay, disposing of the application.

Issue 2: Appeals by the Commissioner of Central Excise
The appeals were directed against the Tribunal's order dated 4th March, 2011, which relied on Notification No. 1/2011-C.E. (N.T.). The Tribunal allowed the appeals filed by the respondent-assessee based on this notification.

Issue 3: Interpretation of Notification No. 1/2011-C.E. (N.T.)
The notification exempted certain goods from duty of excise for a specified period, subject to conditions. The respondent-assessee had manufactured pre-fabricated components for the Delhi Metro construction. The appellant argued that the exemption did not apply as the goods were not manufactured at the construction site. However, the court disagreed, noting that the construction site was spread all over Delhi, interconnected, and the casting yard itself constituted the construction site. Therefore, it was held that no substantial question of law arose, and the appeals were dismissed.

This judgment addressed the condonation of delay in refilling the appeal, the Commissioner of Central Excise's appeals against the Tribunal's order, and the interpretation of Notification No. 1/2011-C.E. (N.T.) regarding exemption from duty of excise. The court considered the specific facts of the case, including the nature of the construction site and the interconnected construction activities, in determining the applicability of the exemption notification.