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TMI Blog2015 (4) TMI 690X X X X Extracts X X X X X X X X Extracts X X X X ..... ould be covered for full exemption duty under this exemption only when such parts are used within the factory in which the same have been manufactured for manufacture of non-conventional energy producing systems. In other words, this exemption notification is applicable only to those parts manufactured in a factory which are captively used for manufacture of non-conventional energy devices/systems. We find that the identical issue has been considered by the Apex Court in its judgement in the case of Binny Ltd. reported in [2006 (3) TMI 150 - SUPREME COURT OF INDIA]. In that case, M/s. Binny Ltd. were manufacturing roof structures to be used for roofing of the digester of the biogas plant. But M/s. Binny Ltd. were not manufacturing the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing under any Chapter of Central Excise Tariff. Sl. No.16 of the List 9 of the notification covers, Agriculture/Forestry, agro industrial, industrial, municipal and urban waste conversion devices producing energy and Sl.No.21 of the List No.9 covers, parts consumed within the factory of production of such parts for manufacture of goods specified at Sl.No.1 to 20 above . The Department is of the view that the goods manufactured by the respondent are parts of Biomass Energy Producing Systems but since the same are not consumed within the factory of production of such parts for manufacture of Biomass Energy Producing Systems, the same would not be eligible for exemption. It is on this basis that the Joint Commissioner, Central Excise vide or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covers parts consumed within the factory of the production of such parts for manufacture of the goods specified at Sl.No.1 to 20 above , that in view of this, exemption under this notification would be applicable only to those parts which are consumed in the factory of their production for manufacture of biomass energy producing systems, that Biomass energy producing system are manufactured by ISGEC, Yamunagagar, Haryana to whom the parts manufactured by the respondent are supplied, that since the parts of the Biomass Energy Producing Systems are not used within the factory where the same are produced, they are not covered by Sl.No.21 of the List 9 and since the goods are only parts, not complete energy producing systems, the same are als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacture of bio gas plant within the factory premises, he would not be eligible for the exemption, that the ratio of this judgement is squarely applicable to the facts of this case and that in view of this, the impugned order is not correct. 4. Shri Amit Jain, Advocate, the learned Counsel for the Respondent defended the impugned order by reiterating the findings of the Commissioner (Appeals) in it. 5. We have considered the submissions from both the sides and perused the records. 7. The respondent manufacture certain components of boilers of Biomass Energy Producing System. The boilers for Biomass Energy Producing System are manufactured by ISGEC, Yamunanagar, Haryana and the same can be treated as Biomass Energy Producing Devic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reting the word device in this entry so as to cover parts of non-conventional energy system within this entry. In List 9, since S.No.21 cover parts, the parts of non-conventional energy systems would not be covered by S.No.1 to 20 of the List 9. But S.No.21 covers only those parts which are captively used in manufacture of complete conventional energy systems. Therefore, in our view, the parts of the Non-conventional Energy Devices/Systems would be covered for full exemption duty under this exemption only when such parts are used within the factory in which the same have been manufactured for manufacture of non-conventional energy producing systems. In other words, this exemption notification is applicable only to those parts manufactured i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as per Entry 14 or parts therefore which are consumed within the factory. The appellant is neither manufacturing biogas plants nor using the manufactured parts used for the manufacture of biogas plants within the factory premises. 8. In our view, the above judgement of the Apex Court on this issue is binding on this Tribunal, more so, when the facts of the case of M/s. Binny Ltd. are identical to the facts of this case. We find that the same view has been taken by the Tribunal in its earlier judgement in the case of Maharashtra Safety Glass Works Ltd. Vs. CCE, Pune reported in 1999 (108) ELT 459 (Tribunal ). 9. In view of the above discussion, the impugned order is not sustainable. The same is set aside and the order passed by the Joi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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