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2017 (6) TMI 1018 - AT - Central ExciseNon-conventional Energy Devices/Systems - N/N. 6/02-CE dated 1.3.2002, Sl.N0.237 List 9(16) - whether the parts of the boilers of Biomass Energy Producing Systems being manufactured by the respondent are devices producing energy in terms of Sr. No. 16 of List 9? - whether the said parts, and which are not consumed within their factory but are used elsewhere in the factory of ISGEC, Yamunanagar, Haryana, would be eligible for exemption under N/N. 6/2002-C.E.? - Held that: - As the scope of entry against S. No. 237 non-conventional energy device/systems specified in List 9 is confined by what is mentioned in List 9, there is no scope for interpreting the word device in this entry so as to cover parts of non-conventional energy system within this entry. By no stretch of imagination, parts can be termed as a conversion device producing energy. Hence, these are not covered in Sr. No. 16 of List 9 of the notification. In List 9, since S. No. 21 cover parts, the parts of non-conventional energy systems would not be covered by S. Nos. 1 to 20 of the List 9. But S. No. 21 covers only those parts which are captively used in manufacture of complete conventional energy systems. Therefore, in our view, the parts of the Non-conventional Energy Devices/Systems would be eligible for full exemption from duty under this notification only when such parts are used within the factory in which the same have been manufactured for manufacture of non-conventional energy producing systems. As the appellant is neither manufacturing Biomass Energy Producing Device/System nor using the manufactured parts for manufacture of Biomass Device/System within the factory premises, they are not eligible for benefit of the notification. Since the demand of duty against the respondent is being upheld without extending the benefit of exemption, the impugned goods are no longer exempted goods. As a consequence thereof, the appellant will go out of the purview of the Rule 6(3) (b) of Cenvat Credit Rules, 2004 and the Cenvat Credit reversed by them @ 8% would no longer required to be reversed. Hence the same is required to be adjusted against the total demand of duty. Appeal allowed - decided in favor of appellant.
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