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TMI Blog2025 (4) TMI 312X X X X Extracts X X X X X X X X Extracts X X X X ..... who has in turn placed the order for these items on the appellant. 2. M/s. ABB Limited have told the appellant that under Notification No. 6/2006-CE dated 1.3.2006, no Excise Duty is required to be paid when the goods are being dispatched to NTPC. Accordingly, the appellant has not charged any Excise Duty when the goods were cleared to NTPC. Show Cause Notices came to be issued on the ground that the appellant was not eligible for duty exemption. Under these Show Cause Notices, Excise Duty to the tune of Rs.34,698 and Rs.93,515/- were demanded. The appellant submitted their replies stating that M/s. ABB have clearly told that the goods are covered by the Exemption Notification No. 6/2006-CE dated 1.3.2006 along with Customs Notification No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earance of the products without payment of duty by availing the benefit of exemption granted under Notification No. 6/2006-CE., was done so, after a certificate issued by Jt. Secretary Ministry of Power, Government of India to BHEI and consequent sub-contract given by BHEI. It is also undisputed that the appellant had produced certificate of the receipt of excisable goods at the sites of mega power project duty signed by authorized duly signed by the authorized representative of M/s. Jindal Power Ltd., who were sub-contractor of BHEL for execution of such mega power project. On the perusal of the entire Order-in-Original, we find that the adjudicating authority has sought to deny the benefit of exemption Notification No. 6/2006 only on two ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e goods re to be exempted under the Customs Tariff Act when imported into India. On perusal of the relevant entries in the Customs Tariff Act, we find that at entry No.400, the following is indicated in notification No.21/2002-Cus: 40098. 1 Goods required for setting up of any Mega Power Project, so certified by an officer no below the rank of a Joint Secretary to the Government of India in the Ministry of Power, that is to Say a) an inter-State thermal power plant of a capacity of 700MW or more, located in the States of Jammu and Kashmir, Sikkim, Arunachal Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland and Tripura: or b) an inter-State thermal power plant of capacity or 1000MW or more, located in the States other the those spe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ................. International Competitive Bidding, falling under any Chapter" are exempted subject to condition 64 of the Notification. Condition 64 reads as follows: "64... 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 Proj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Automatic Electric Lid. v. CCE. Mumbai-2004 (178) ELT. 524 (Tri-Mumbai), has held that the benefit of exemption under Notification 108/59-C.E. is available to a sub-contractor when M/s BHEL is the main contractor of an approved project. The fact that there was a contract between the main contractor and the sub-contractor will ensure that supplies made eventually react the project site. The ratio of the above case is clearly applicable to the present case. In these circumstances, we set aside the impugned order and allow the appeals with consequential relief, if any." It can be seen that in the said case of CST Ltd., an identical issue was raised and again in respect of the very same executor of mega power project Le.. BHEL. We find that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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