9911796707
TMI Blog2024 (6) TMI 438X X X X Extracts X X X X X X X X Extracts X X X X ..... JINDAL, MEMBER (JUDICIAL) AND SHRI K. ANPAZHAKAN, MEMBER (TECHNICAL) Shri N.K. Chowdhury, Advocate for the Appellant Shri P.K. Ghosh, Authorized Representative for the Respondent ORDER The appellant is in appeal against the impugned order wherein the benefit of exemption notification number 6/2006-CE dated 1.3.2006. has been denied by the appellant. 2. The facts of the case are that the appellant were engaged in manufacture and clearance of Centrifugal Pumps and spares thereof and clearing the same to different Mega Power Projects availing the benefit of exemption Notification No. 6/2006-CE dated 1.3.2006. Serial No. 91 of the said notification exempts the goods of any chapter if supplied against international competitive bidding subject to Condition No. 19 which provides that the exemption is available if the goods are exempted from duties of Customs leviable under the First Schedule to the Customs Tariff Act, 1975 and the additional duty leviable under Section 3 of the said Customs Tariff Act when imported into India. The appellant supplied the goods to different power projects against international competitive biddings by the clearing the goods without payment of duty. The appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Jindal Power Ltd. invited International competitive bidding. M/s. IVRCL Infrastructure Projects Ltd. obtained the Order and Letter of Intent was issued by M/s. Jindal Power Ltd. to M/s IVRCI Infrastructure Projects Ltd. The appellant was one of the suppliers, which is clearly evident from the Project Authority's Certificate forwarded to the Appellant vide letter dated 21.11.2006 by M/s IVRCI Infrastructure Projects Ltd. The supply of goods to M/s IVRCI Infrastructure Projects Ltd. was at the site of M/s. Jindal Power Ltd., which is amounting to supply of the goods to the Raigarh Thermal Power Project being set up by M/s. Jindal Power Ltd. Therefore, the supply of goods by the appellant to M/s IVRCI Infrastructure Projects Ltd. amounts to supply of goods to M/s Mega Power Project. In the invoice, the sald fact has been clearly mentioned. We observe that the above facts clearly indicates that the goods were supplied to Power Projects approved against international competitive bidding, as required for avalling the benefit of the Notification 6/2006-Ce 01.03.2006. 9. The Appellant further submits that goods supplied by the appellant may fall under any Chapter heading, but if requi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not participated in the international competitive bidding and goods falling under chapter 72 of the Central Excise Tariff Act cannot be considered as goods which can be relatable to chapter 98.01 to get the benefit of customs Notification No. 21/2002 and nor the appellant nor BHEL, registered for ay project imports to get the benefit of customs Notification No. 21/2002 and nor the appellant no BHEL registered for any project imports. 8. At the outset, we would find that the entries in the Notification No. 6/2006 reds as under :- SL. Chapter or heading Description of goods Rate Condition 91 Any chapter All goods supplied against International Competitive Bidding NIL 19 And the condition attached thereto is read as under:- Condition 19. If the goods are exempted from the duties of Customs leviable under the Firs Schedule to the Customs Tarrif Act, 1965 (51 of 1976) ad the additional duty leviable upper Section 3 of the said Customs Tariff Act when imported into India. 9. It can be seen from the above reproduced entry No. 91 of Notification No. 6/2006 that goods of any chapter if supplied against international competitive bidding, exemption is available subject to the condition as re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,,, If the goods are exempted from the duties of customs leviable under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and the additional duty leviable under Section 3 of the said Customs Tariff Act when imported into India, It is not in dispute that the goods imported for supply to Mega Projects are entitled to whole duty exemption under Customs Tariff Act. The next thing to be examined is whether the goods supplied are against International Competitive Bidding. The appellants are a sub-contractor of M/s. BHEL M/s. BHEL is executing the Mega Project for Kahalgaon Super Thermal Power Project by International Bidding. The appellants have submitted all the relevant records. The appellants are also found in the list of sub-contractors. Since the goods are supplied by the appellants to BHEL, who are executing the project by International Competitive Bidding, It is very clear that the goods deared by the appellants should be considered as goods supplied against International Competitive Bidding . There is absolutely no need that the appellants themselves should have been the bidder in International Competitive Bidding. In huge projects, the main contractor does not do e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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