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2019 (12) TMI 937 - AT - Central ExciseClassification of goods - Bulk Milk Cooler - whether classified under CETH 84186990 or under CETH 84198990 of CETA - benefit of N/N. 6/2006 – CE dated. 01.03.2006 and N/N. 12/2012 – CE dated. 17.03.2012 - Rule 9 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 - HELD THAT:- The Appellant intimated the jurisdictional authorities on 12.01.2012 vide their letter that they are availing exemption from duty on said goods under notification No. 6/2006 - CE dated 01.03.2006 ( Serial No. 5) and 12/2012 dated 17.03.2012 (Serial No. 232). The Stationary Bulk Mill Cooling equipment were supplied by Appellant to Milk Co-operative Societies for use as cold storing and preserving the Milk along with dairy products. The Appellant along with such Bulk Milk Cooler were also clearing bought out items viz. DG Sets, Solar Panels, Milk Pump, Water Pump, Stabilizer etc. and were cleared as per option of customers. The goods were assembled at the premises of co-operative societies. The goods covered under the exemption were “Goods specified in List 7 intended to be used for the installation of a cold storage, cold room or refrigerated vehicle, for the preservation, storage, transport or processing of agricultural, apiary, horticultural, dairy, poultry, aquatic and marine produce and meat.” It is an undisputed fact that “Bulk Milk Cooler” were supplied for installation of cooling facility for preservation and storage of Milk by cooling by Mechanical Appliances. The goods in question are Stationary Pre-cooling equipment which is also not disputed and the product broucher also shows the same. When the bulk milk cooler are in stationary stage and are used for cooling the milk so as to bring down the temperature to 4 degree centigrade with intention of storage and preservation, it is clear that the goods are for use as cold storage of Milk. The undisputed fact is that the goods were used for intended purposes covered by the Notification. It is coupled with the fact that the Appellant had informed their jurisdictional authorities about the clearance of goods under exemption. In such case when the goods are covered by the exemption notification and there is no dispute about the use of goods, we are of the view that the intended benefit be given to the Appellant. Clearances to interconnected undertaking M/s Krishna Allied Industries Ltd. - HELD THAT:- The sale price of said company would be chargeable to duty at the end of Appellant in terms of Section 4 (3) (b) (i), we find that said section is applicable where the goods are sold to or through any related party and the assessable value would be eventual sale price to the actual customer - Thus from the perusal of Rule 9, it is clear that in case of sale to interconnected undertaking the assessable value would be the transaction value to the interconnected undertaking only and the sale price of the interconnected undertaking will not merit any consideration. Time limitation - HELD THAT:- From the facts of the case no contumacious conduct of the Appellant is appearing. They had bonafide belief that Bulk Milk Cooler is exempted from payment of duty by virtue of exemption notification. In such case it cannot be said that the Appellant had any intention to suppress the fact. Therefore, the demands are time barred also. The Appellant being eligible for exemption are not liable for duty - Appeal allowed - decided in favor of appellant.
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