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TMI Blog2018 (5) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... fication no. 21/2002-Cus dated 1st March 2002 enables exemption from duties of customs for accessories of compressors, the benefit of duty free clearance envisaged at serial no. 301 read with condition no. 64 in notification no. 6/2002-CE, is available to the appellant. Denial of exemption also on the ground of non-participation in international competitive bidding process - Held that: - the decision of Tribunal in Toshniwal Industries Pvt. Ltd [2017 (5) TMI 387 - CESTAT NEW DELHI] relied upon, where it was held that exemption cannot be denied for the reason that sub-contractor did not take part in International Competitive Bidding - The ineligibility for non-participation in bidding process, will also not sustain. Appeal allowed - de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und that the volume bottle , otherwise known as pulsation dampener , are parts which are not covered by the list enumerated in the said notification and that such eligibility is further available only to participants in international competitive bidding process . He brought to our notice the technical literature pertaining to the assembly of compressor facility for which the goods had been utilized; he demonstrated that it was impossible to have this effected at the factory of manufacture and, on the contrary, could be assembled only on site. Relying upon the decision of the Tribunal in Toshniwal Industries Pvt Ltd v. Commissioner of Central Excise, Jaipur-II [2017 (5) GSTL 179 (Tri-Del)], he submitted that the benefit of the notification n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on at site forming part of whole compressor package erected and it is indeed an integral part of complete compressor package emerging as a process of such erection activity at said ONGC site and that the project awarded to M/s Clough Gap Products International Pvt Ltd, had been sub-contracted for indigenous equipment to M/s Dressor Rand (I) Ltd who, in turn, sourced volume bottles from the appellant. Its, thus clear that volume bottle is not an integral part of the compressor which is manufactured but, even so, is indispensable for installation of the compressor facility at the project site. Hence, the impugned goods are undoubtedly accessories. The criticality of pulsation suppression device design for reciprocating compressor is appa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oject site. What we noticed is that neither the benefits under Notification No. 21/2002- 4 A.No. E/2253/11 Cus (Sr. No. 400) nor the exemption under Notification No. 6/2006-CE (Sr. No. 91) is subject to any conditions stipulated in Foreign Trade Policy. BHEL as the main contractor could have imported the impugned goods without payment of Customs duty in view of Notification No. 21/2002-Cus (Sr. No. 400). Notification No. 6/2006-CE Sr. No. 91 only makes it possible to procure such goods locally without payment of excise duty if BHEL so desires and BHEL opted for local procurement from the assessee-Appellants. So, naturally the assessee-Appellants should be eligible for exemption under Notification No. 6/2006-CE (Sr. No. 91). Prima facie, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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