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TMI Blog2024 (2) TMI 905X X X X Extracts X X X X X X X X Extracts X X X X ..... the insulation on the furnace and without such insulation the heat cannot be controlled and so also the safety around the furnace cannot be ensured. These form essential part of the boiler and therefore are eligible for the benefit of Notification. The Tribunal in the case of CHEMPLAST SANMAR LTD. VERSUS COMMISSIONER OF C. EX., TIRUCHIRAPALLI [ 2006 (8) TMI 51 - CESTAT, CHENNAI] had observed that these materials are eligible for credit as capital goods as these form part of the furnace and pipeline used in the factory. Again it is to be stated that as per the exemption Notification, all items which are used for setting up of the project for generation of power using non-conventional materials is eligible for the benefit of exemption. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest and imposed penalty. On appeal, the Commissioner (Appeals) upheld the same. Aggrieved by such order, the appellant is now before the Tribunal. 2. The Ld. counsel Shri M. Kannan appeared and argued for the appellant. The relevant part of the exemption Notification No. 33/2005-CE dated 08.09.2005 was adverted to by the Ld. counsel and is reproduced as under:- Notification 33/2005-CE dated 08.09.2005, exempts; all items of machinery, including prime movers, instruments apparatus and appliances, control gear and transmission equipment and auxiliary equipment (including those required for testing and quality control) and components, required for initial setting-up of the project for generation of power using non-conventional mate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the impugned order was referred by the Ld. AR to submit that a project cannot be called a power project unless it generates power. In the instant case the goods do not play any role in the generation of power. The items are not intended to be used in any power generation plant. These goods only increase the functional efficiency of the boilers. That therefore, the Commissioner (Appeals) has rightly upheld the demand, interest and penalties. The Ld. AR prayed that the appeal may be dismissed. 6. The issue to be considered is whether the goods in the nature of ceramic fiber board and ceramic fiber twisted rope are eligible for exemption under Notification No. 33/2005-CE dated 08.09.2005. 7. On perusal of the impugned order as well as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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