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TMI Blog2023 (5) TMI 1339X X X X Extracts X X X X X X X X Extracts X X X X ..... cts which are exempted from customs duty. The supply of subject goods in the instant case for Mega Power Project under International Competitive Bidding is on record and not in dispute. Moreover, since the case of the appellant has already been settled by the Co-ordinate Bench of the Tribunal as noted above, the appellant is legally entitled to exemption from payment of Central Excise duty and thus the duty demand is not sustainable. It is not in dispute that the subject goods are used for Mega Power Project through International Competitive Bidding. Therefore, by relying on the above cited decisions, the appellant is entitled for the exemption as claimed. There are no merit in the impugned order and the same is set aside - appeal allowed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Power Project set up by M/s Nagarjuna Power Corporation Limited, which qualifies as a Mega Power Project as per Notification No.21/2002-Cus dated 01.03.2002 Sl.No.400. The goods were supplied to the project without payment of Central Excise duty in terms of Project Authority Certificate dated 06.09.2007 read with amendment No.4 to the Project Authority Certificate dated 21.01.2008. 2.2 As per the provisions of Notification No.6/2006-CE dated 01.03.2006 Sl.No.91, the goods can be dispatched at Nil rate of duty based on two conditions, namely, (a) goods to be supplied against international competitive bidding and (b) Customs duty and Additional duty of Customs leviable on the goods are exempted when imported in India. 2.3 In this case, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xemption under the said exemption Notification. In the event of Customs duty not being fully exempted, the condition of zero Customs duty has not been fulfilled in terms of Notification No.6/2006-CE dated 01.03.2006 and thereby the appellant is not entitled to avail full exemption and therefore, is liable to pay Central Excise duty. 2.6 The matter was adjudicated. The demand of duty was confirmed along with interest. Penalty was also imposed on the appellant. Against the said order, the appellant is before us. 3. As per the records, the appellant submits that the TMT bars were sold by the appellant, which are used in Mega Power Project against the goods to be supplied against the international competitive bidding. These facts are not in dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere is no Heading 9801 in Central Excise Tariff which is only in Customs Tariff. The goods manufactured in India cannot be classified under 9801, accordingly, denial of exemption on that ground is not tenable. Further, the Tribunal in Paramount Communications Limited vide Final Order dated 23-6- 2016 examined the very same issue and held the denial of exemption on the ground of classification shown under Customs Notification is 9801, is not sustainable. The same ratio has been followed by the Tribunal in KEI Industries Limited vide Final Order No. 52371/2016, dated 1-7-2016. 6 . In view of the above decided cases, it is clear that the denial of the exemption to the appellant is not legally sustainable. Admittedly, the condition stipulated f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble for exemption as projects import as available under the aforesaid Notification No. 21/2002 (supra). We also note that in an identical case, as relied upon by the appellant in the case of Cords Cable Industries Pvt. Ltd. (supra), the Tribunal has allowed the excise exemption wherein it has been observed in para 6 that :- 6. In view of the above decided cases, it is clear that the denial of the exemption to the appellant is not legally sustainable. Admittedly, the condition stipulated for exemption under Notification No. 6/2006-C.E. has been fulfilled by the appellant except for the classification in column 2 of Entry No. 400 in Customs Notification No. 21/2002-Cus. As clearly noted, the classification [Heading] 9801 is not available in C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdingly set aside the impugned order and allow the appeal. We note that the entries in the Excise Exemption Notifications as availed by the assessee appellant in column No. (2) for reference of Chapter or heading specifically states Any Chapter , which clearly implies that goods sought to be cleared by assessee under the said exemption entries may fall under any of the chapter headings of Central Excise Tariff with the only condition that they are supplied under International Competitive Bidding which are exempted from customs duty. The observation made by the Learned Commissioner to deny the exemption that the goods manufactured by appellant i.e. cable tray and accessories falling under chapter sub-heading 7308 90 90 which is used as suppo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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