2015 (10) TMI 284 - AT - Central Excise

Denial of exemption claim - whether appellant is entitled to claim duty free exemption under notification no. 6/02 dated 1/3/2002 at serial no. 260A for steel plates required by them to Delhi Metro Rail Corporation of India or not - Held that - conditions stipulated to the appellant is that the appellant is to produce the certificate issued by Managing Director, Co-Director- Rolling Stock Electrical and Signaling and Co-Directors-Finance of Delhi Metro Rail Corporation - As per notification, all items of equipments are entitled for exemption. Definitely the steel plates have been used by the appellant for fabrication of equipment/structures which also have the support of the TRU letter No. F. No. 354/7/2003 dated 14.09.2004 to say the item in question is part of traction equipment. Therefore, we hold that appellant has complied with the conditions of notification no. 6/02 dated 1/3/2002 serial no. 260A, the appellant is entitled for benefit of the said notification. - Decided in favour of assessee.

Issues:
Appeal against denial of benefit under notification no. 6/02 Central Excise dated 1/3/2002 for supplying steel plates to Delhi Metro Rail Corporation.

Analysis:
The appellant appealed against a decision denying them the benefit of notification no. 6/02 Central Excise dated 1/3/2002 for supplying steel plates to Delhi Metro Rail Corporation. The appellant claimed exemption under serial no. 260A of the notification but was denied by the Adjudicating Authority on the grounds that steel plates were not considered equipment under the said entry. Consequently, duty demand, interest, and penalty were imposed. The appellant contended that the steel plates supplied were part of the equipment/structures of Delhi Metro Rail Corporation and fell under serial no. 260A of the notification. The appellant had obtained the necessary certificate from the competent authority to claim exemption. The appellant argued that they were entitled to the exemption based on the certificate and referred to a clarification and previous tribunal decisions to support their claim. On the other hand, the Department reiterated the findings of the impugned order, stating that the steel plates did not qualify as equipment or rolling stock for duty-free exemption.

The issue before the tribunal was whether the appellant was entitled to claim duty-free exemption under notification no. 6/02 dated 1/3/2002 at serial no. 260A for supplying steel plates to Delhi Metro Rail Corporation. The relevant provision of the notification stated that all items of equipment procured by or on behalf of Delhi Metro Rail Corporation for use in the project were eligible for exemption. The conditions required the appellant to produce a certificate from specified authorities of Delhi Metro Rail Corporation confirming that the goods were produced for the project and would be owned by the corporation. The certificate provided by the appellant met these conditions, certifying that the goods were procured for the project and would be owned by the corporation. The tribunal found that the steel plates were used for fabricating equipment/structures, supported by a letter confirming the item in question was part of traction equipment. Consequently, the tribunal held that the appellant had fulfilled the conditions of the notification and was entitled to the exemption.

In conclusion, the tribunal set aside the impugned order and allowed the appeal, granting consequential relief to the appellant.

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