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TMI Blog2013 (12) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... gible for exemption. Redemption fine of Rs. 2,00,000/- has been imposed and further penalty equal to the duty demanded has also been imposed on the appellant. 2. The learned counsel submits that the pipes in question were supplied for four Lift Irrigation Schemes in Andhra Pradesh. It is not in dispute that in all the four cases, the certificates from the District Collector were produced as required under the notification. The department has denied the exemption on the ground that the exemption is available only for those pipes which are used for delivery of water from its source to the water supply plant and from there to the storage facility. In this case there is no water supply plant and there is no storage facility. 3. The learned co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause notices were issued beyond the normal time limit after one year. 4. The learned AR would submit that the notification requires in the water supply plant and a storage facility. The exemption to pipes is available for moving the water from source to the water supply plant and from supply plant to the storage facility. Exemption notifications have to be interpreted and implemented strictly and therefore if there is no water supply plant and if there is no storage facility, there cannot be exemption. He submits that a mere pump house cannot be considered as a water supply plant. Further cistern is only facilitating movement of water and cannot be considered as a storage point. Therefore appellant is not eligible for the exemption. Furthe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectrical equipments. The question arises whether this can be considered as a water supply plant. It cannot be said that this is a mere pump hosue and the work done is only lifting the water. It was also stated by the Executive Engineer that there were two parallel pipelines for moving water which would mean that pipes are used for releasing the water through different pipelines as per the requirement. This would show that what has been done is not a mere pump house but in reality the plant is built to ensure that the water supplied to the plant is of required quality and water inflow & outflow can be regulated. Coming to the storage facility, obviously there cannot be a need to storing the water. However the professional of a Government org ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gible for exemption. In reality in that case the benefit of exemption has been extended. In this case what we see is that the exemption is claimed for pipes for moving water from the source to the distribution point. We feel that this would be definitely a more deserving case and it would be more proper to extend exemption. Normally the principle is that exemption has to be given a strict meaning and it should not be extended. In this case, exemption is claimed for movement of water up to from distribution point only from source. Obviously this is a more deserving case. 5.3. Logically and on facts, appellants have a case on merit on the ground that the pump house can be considered supply plant and cistern a storage point. 5.4. Thus, whate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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