Whether benefit of notification 06/2006 is available when assessee supplies goods under international competitive bidding for setting up of mega power project ?

PJ/Case Law /2016-17/3408

Case- RALLISON ELECTRICALS PVT. LTD. VersusCOMMR. OF C. EX., JAIPUR-I

Citation- 2016 (342) E.L.T. 292 (Tri. - Del.)

Brief Facts- The appellant namely M/s. Rallison Electricals Pvt. Limited is in appeal against the order-in-original No. 51/2008-C.E., dated 8-12-2008 passed by Commissioner, Central Excise, Jaipur-I wherein duty of Central Excise of Rs. 60,68,280/- along with interest has been confirmed.
The facts are that the appellant has supplied the goods against International Competitive Bidding [reference to Sr. No. 91 of Notification No. 6/2006-C.E. (supra)] for setting up a Mega Power project of a capacity of 1000 MW or more (refer Sr. No. 400 of Notification No. 21/2002-Cus., dated 1-3-2002) and certified so through a Project Authority Certificate (PAC) dated 9-9-2005 by the Additional General Manager of NTPC, Ms. Reeta Bandopadhyay, who is duly authorised to issue such a certificate.

Appellant’s Contention- The appellant has been represented by ld. Advocate, Sh. Naveen Mullick who inter alia submitted that condition of Notification No. 6/2006-C.E. have been fulfilled and they are entitled to benefit of this notification.

Respondent’s Contention- The Revenue has been represented by the ld. ARSh. Amresh Jain. He reiterated the findings given in the impugned order.

Reasoning of Judgement- The Hon’ble Authority have carefully considered the facts of the case and the submissions of both the sides.
The impugned order confirms the denial of duty of Central Excise saying that conditions of Notification No. 6/2006-C.E. (supra) have not been fulfilled. Commissioner, Central Excise in the impugned order inter alia says that subject goods are not classifiable under Chapter Heading 9801 of Customs Tariff and required certificate has not been issued by CMD of NTPC.
Further, the Commissioner in the impugned order says that the subject goods are not classifiable in Chapter Heading 9801 of Customs Tariff. But from the wordings of Chapter 9801, the authority find that all the items of machinery as well as all components or raw materials for manufacture of the machinery and their components, required for initial setting up of a unit, etc., of specified Power Project (along with other plants/projects) are classified in Chapter Heading 98.01 of Customs Tariff. Therefore, there cannot be any dispute on subject items, ‘Electric Wires & Cables’ as the facts stand are classifiable under Chapter Heading 98.01 of Customs Tariff and as per the discussion made above would be entitled to the benefit of exemption Notification No. 6/2006-C.E., dated 1-3-2006.

Decision- Appeal allowed.

Comment- The gist of the case is that the appellant has supplied the goods (Electrical wires and cables )against International Competitive Bidding to Megha Power Project which is eligible for exemption from duty under Notification No. 6/2006-C.E., in entry serial no 91. Therefore no duty can be demanded and hence appeal is allowed
Prepared by- Akshit Bhandari

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PJ/Case Law /2016-17/3408

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