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TMI Blog2004 (6) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... he boiler. Energy can be converted from one form to another form. Therefore the heat energy is converted into mechanical energy, mechanical energy into electrical energy but the exemption is only for waste conversion devices producing energy from the waste material. Exemption is not for the system under this Sl. No. 16 of List 5. The waste material is used to create thermal energy. The exemption is only for these purposes and not for purposes of conversion of one form of energy into another form of energy. Therefore boiler is the only device where the agricultural, industrial etc. waste is converted into thermal energy. Thereafter this thermal energy is used. Therefore the exemption cannot be extended to turbine which converts heat energy into rotational energy (kinetic energy). Therefore, we are not convinced with the appellants plea that the turbine is eligible for nil rate of duty under Sl. No. 251 of Notification No. 6/2000, read with Sl. No. 16 of list of the said notification or under Notification 6/2002, dated 1-3-2002 read with Sl. No. 16 of List 9. We therefore do not find any merit in this appeal and the same is rejected and order of Commissioner (Appeals) is upheld. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds which are used in the production of energy from non-conventional sources. The amplification of the scope of energy is to be appreciated in the context of increasing emphasis being laid by the Govt. on the use of renewable sources for tapping of energy. For the purpose of energy generated from non-conventional sources the states have been asked to formulate guidelines and Karnataka Govt. has set up Karnataka Renewable Energy Development Ltd. (KREDL) which provides a list of energy producing devices/systems. The letter issued by KREDL specifically indicates the turbines to be an equipment used for specific purpose. Bio-mass is used as a fuel in the boiler for generating steam. In this process the combustion energy present in the bio-mass is transferred to steam. The steam is made to expand in the turbine and the heat energy in the steam is converted into work. i.e. kinetic energy. The rotating movement of rotator is transferred to a generator through a coupling and power is produced. The heat energy present in the steam is thus converted to another form only by the turbine. The boiler only transfers the combustion energy present in the fuel to steam in order to facilitate conveyin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nergy which is the output expected of the bio-mass produced is done only by the turbine. It is therefore the device that converts waste into useful energy. He relied on the Calcutta High Court decision in the case of Suttons Sons (India) Pvt. Ltd. v. UOI, 1995 (75) E.L.T. 229 where, it was held that interpretation by another Ministry monitoring the distribution would be binding on the Revenue authorities. He also said that the Apex Court in the case of STP Ltd. v. CCE, Patna, 1998 (97) E.L.T. 16 held that if there is any doubt in the construction of any provision of taxing statute that doubt must be in favour of assessee. He therefore pleaded that a careful look at List No. 9 of Notification No. 6/2002-C.E., dated 1-3-2002 indicates that the goods that are eligible for benefit of the said notification are used in generation of useful energy. The item listed in the Notification makes it clear that the intention of Notification is to give benefit to all the parts that are used in generation of usable energy from non-conventional sources. Since turbine in question performs similar activity, denial of benefit of the notification to the said turbine is unwarranted. 4. Smt. Shoba L. Cahr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ersion of bagasse or any agricultural waste into energy. In the instant case the turbine requires only steam. Steam itself can be produced in a boiler by using conventional fuel or by using non-conventional fuel. Steam turbine is thus not a device which converts waste into energy. It is the boiler which does these. The Board in it's Order 4/92, dated 19-5-92 issued under Section 37B of the Central Excise Act has also clarified that Boiler whether cleared in CKD/SKD condition if designed for conversion of agricultural waste for producing energy is eligible for the exemption. It is not correct that no device can convert non-conventional energy directly to electrical energy. The solar photovoltaic module directly converts solar energy to electrical energy. Similarly for conversion of wind energy to electrical energy, boiler, condenser and steam turbines are not required. The Notification does not say that wastes should get converted to electricity. If this was the intention, even a boiler would not get the benefit. The word 'energy' is a broad term including various forms such as thermal mechanical, electrical etc. The turbines cleared by the appellants are especially desi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the bio-mass boiler. The bio-mass fuel is obtained from the agricultural and industrial waste to generate steam in the boiler. Therefore bio-mass has been used for producing heat energy which is taken by the steam. Turbine itself, does not work on bio-mass. In all the cases in the past under the Notifications predecessor to the present notification, exemption was allowed only to the boilers where agricultural municipal and other wastes were used for converting the same in the boiler into heat energy. It is seen that all the decisions relied upon by the appellants are for exemption to boiler. The agricultural, industrial, municipal wastes etc., as given in the Notification is not used in the turbine for conversion of the steam into energy. The conversion of this waste into energy is only in the boiler. Energy can be converted from one form to another form. Therefore the heat energy is converted into mechanical energy, mechanical energy into electrical energy but the exemption is only for waste conversion devices producing energy from the waste material. Exemption is not for the system under this Sl. No. 16 of List 5. The waste material is used to create thermal energy. The exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X
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