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TMI Blog2018 (11) TMI 455X X X X Extracts X X X X X X X X Extracts X X X X ..... there to the storage facility. The notification reads as follows: "Notification No. 3/2004-CE In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts - (i) All items of machinery, including instruments, apparatus and appliances, auxiliary equipment and their components/parts required for setting up of water supply plants; and (ii) Pipes needed for delivery of water from its source to the plant and from there to the storage facility, falling under the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), from whole of the duty of excise leviable thereon un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es to be supplied by the appellant. 3. A show cause notice was issued to the appellant on 25.03.2009 after conducting investigations alleging that appellant has wrongly availed the benefit of exemption notification. The notification required the existence of water supply plant and storage facility neither of which were present in the particular project. It was argued that merely because a certificate was issued by the District Collector the benefit of the exemption notification cannot be extended unless the conditions of the notification are met by the appellant. Accordingly, it was proposed to demand duty invoking extended period along with interest. It was also proposed to confiscate onsite the pipes which were cleared by the appellant a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the exemption notification and the lower authority has erred in denying them the benefit of the exemption notification. 5. Learned departmental representative reiterated the Order-in-Original. He further relied on the case law of Dilip Kumar and Company [Civil Appeal No. 3327 of 2007] in which the Hon'ble Apex Court had held that whenever there is an ambiguity in the eligibility of exemption notifications, the benefit of doubt should go in favour of revenue and against the person claiming the benefit of notification. He argued that there is no clear indication that there is a storage facility and hence pipes supplied by the appellant from the source to the plant are not entitled to the benefit of the notification. It is also his contention ..... X X X X Extracts X X X X X X X X Extracts X X X X
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