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2023 (8) TMI 894 - AT - Central ExciseInternational Competitive Bidding - Exemption under Notification No. 6/2006-CE dated March 1st, 2006 denied - Appellant appointed as sub-contractor for the projects BHEL required the Appellants to supply boiler components of main equipments of the Mega Power Project while L&T required the Appellant to supply Technological Structures and Chutes of Coal Handling Plant of the Mega Power Project - HELD THAT:- The goods have been cleared by the Appellants to the specified Mega Power Projects against International Competitive Biddings and the said facts have duly been recorded in the impugned order and there is no dispute on the said facts. The notifications under which exemptions have been claimed by appellants are subject to condition that the said goods, when imported into India, are exempted from payment of customs duty. In the instant case, since the goods have been supplied for setting up expansion of Mega Power Projects, we find that the Learned Commissioner in his adjudication order has not negated the submissions made by the appellant regarding the availability of the exemptions from customs duty. Had the said goods been imported from outside India, the same would have been eligible for exemption as ‘projects import’ as available under the aforesaid Notification No. 21/2002. The goods in question are classifiable under Chapter 73 of the Tariff. Under Central Excise Tariff there is no Heading 98.01 which exists in Customs Tariff only. Since the goods manufactured in India cannot be classified under Heading 98.01 of the Central Excise Tariff, denial of the exemption on the ground of non-fulfilment of condition of Project Import Regulation is not sustainable particularly when Condition No. 86 of the Notification No. 21/2002, dated 1-3-2002 is fulfilled by them - it is held that appellants are eligible for exemption under Notification 6/2006-C.E., dated 1-3-2006 and accordingly the impugned order is liable to be set aside. As it is an undisputed fact that the impugned goods were supplied and used for setting up/expansion of the Mega Power Projects through International Competitive Bidding process, therefore the exemption as claimed by the Appellant is admissible to them. Under the circumstances there is no merit in the order of the adjudicating authority challenged herein, which therefore needs to be set aside. The impugned order passed by the Learned Commissioner is therefore dismissed as non-maintainable - The appeal filed by the assessee is allowed.
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