2024 (6) TMI 1318 - AT - Central Excise

Eligibility for exemption in terms of N/N. 06/2006-C.E. dated 01.03.2006 - goods supplied to Mega Power Projects wherein the contract is awarded on the basis of international competitive bidding - HELD THAT - The respondent has manufactured and supplied the goods by availing the benefit of exemption Notification No. 06/2006-C.E. dated 01.03.2006. The goods supplied by the respondent are covered under Sl. No. 400 of Notification No. 21/2002-Cus. dated 01.03.2002 which clearly exempts goods imported for Mega Power Projects. The only condition prescribed in the said Notification is that the respondent should submit a certificate from an Officer not below the rank of Joint Secretary to the Government of India in the Ministry of Power - the respondent has produced the certificate from the competent authority to the effect that the goods are required for the Mega Power Projects. Accordingly, the respondent fulfilled the condition stipulated in the said Notification. The ld. adjudicating authority has examined this issue and rightly held that the respondent is eligible for exemption in terms of Notification No. 06/2006-C.E. dated 01.03.2006 - there are no infirmity in the impugned order dropping the proceedings. The impugned order passed by the ld. adjudicating authority upheld - the appeal filed by the Department is dismissed.

Issues:
1. Eligibility for exemption under Notification No. 06/2006-C.E.
2. Interpretation of Condition No. 19 of Notification No. 06/2006-C.E.
3. Requirement of registration under Project Imports Regulations, 1986 for availing exemption.
4. Compliance with Condition No. 86 of Notification No. 21/2002-Cus.
5. Applicability of Chapter Note 2 of Chapter 98 for registration of imports.

Analysis:
1. The appeal was filed by the Revenue against the dropping of proceedings by the Commissioner of Central Excise, Haldia Commissionerate. The respondent availed exemption under Notification No. 06/2006-C.E. for goods supplied to Mega Power Projects based on international competitive bidding. The Revenue contended that the goods were not eligible for exemption as per Condition No. 19 of the Notification.

2. The Department argued that the goods should be exempted from customs duty and additional customs duty as per Condition No. 19, which was not fulfilled. They highlighted the requirement under Notification No. 21/2002-Cus. for registration of imports under Project Imports Regulations, 1986. However, the respondent maintained that they fulfilled Condition No. 86 by submitting the required certificate from a Joint Secretary.

3. The Tribunal found that the respondent complied with the conditions of both Notifications. They emphasized that the goods supplied were covered under Notification No. 21/2002-Cus., exempting goods for Mega Power Projects subject to fulfilling Condition No. 86. The Tribunal rejected the Revenue's argument regarding the necessity of registration under Project Imports Regulations, 1986 for availing the exemption.

4. The Tribunal referenced the adjudicating authority's findings, which acknowledged the fulfillment of conditions for exemption under Notification No. 06/2006-C.E. and Notification No. 21/2002-Cus. The authority noted that the respondent provided the required certificate, meeting the stipulations. The Tribunal upheld the authority's decision, emphasizing the proper fulfillment of conditions for exemption.

5. The Tribunal dismissed the appeal, supporting the authority's ruling and confirming the respondent's eligibility for exemption. They emphasized that the respondent's compliance with the necessary conditions under the relevant Notifications justified the dropping of proceedings by the Commissioner. The Tribunal's decision was based on a thorough examination of the legal provisions and factual circumstances presented in the case.

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