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2019 (3) TMI 1219 - AT - Central ExciseBenefit of N/N. 6/2006-CE dt.1.3.2006 (Entry No.90) - Supply of bus chassis to Delhi Metro Railway Corporation (DMRC) - case of Revenue is that such transaction would signify that the buses have neither been procured by DMRC nor will be owned by DMRC. Therefore, M/s. Tata has failed to fulfil the condition No. 18 under exemption N/N. 6/2006-CE dt.1.3.2006 - Held that:- As per the condition 18 of notification, the goods are required to be procured by or on behalf of the Delhi Metro Rail Corporation Ltd. for use in the Delhi MRTS project and the goods are part of the inventory maintained by the Delhi Metro Rail Corporation Ltd. and shall be finally owned by the Delhi Metro Rail Corporation Ltd - Admittedly, the goods in question have been procured by DMRC in Metro Feeder bus service, therefore, the use of bus is for MRTS project. The sole reason to deny the benefit of exemption notification is the agreement between DMRC and its operators. As per agreement after five years the operator shall become the owner of the bus. In fact, on the basis of record placed before us, operators have never completed contract and agreements were not rescinded. Consequently, the DMRC remains the owner of the buses in question, therefore, on that ground the benefit of exemption notification cannot be to the appellant. It is admitted that these bus chassis purchased by DMRC from M/s.Tata are used as feeder bus service to carry passengers from various routes of metro and vice versa are integral part of the Delhi MRTS project and DMRC is the owner of the buses, therefore, DMRC has rightly issued certificate in terms of N/N. 6/2006-CE dt.1.3.2006 and M/s.Tata is entitled to avail exemption notification and have rightly cleared chassis in question without payment of duty. Appeal allowed - decided in favor of appellant.
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